2 ASX ETFs leveraging the green energy transition

Check out these amazing 12-month returns!

Thematic ASX exchange-traded funds (ETFs) enable investors to participate in investment themes with long-term tailwinds.

One of them is the global green energy transition.

This investment theme is being clearly seen in the commodities markets, where prices for future-facing metals have soared.

Here are 2 ASX ETFs capitalising on this thematic.

Lakes in the form of footsteps among the green trees, indicating steps towards a healthier planet.

Image source: Getty Images

Betashares Energy Transition Metals ETF (ASX: XMET)

XMET ETF is $16.83 per unit, down 0.7% on Thursday but up a staggering 114% over the past 12 months.

This ASX ETF invests in 30 metal producers that are powering the global clean energy transition.

XMET tracks the Nasdaq Sprott Energy Transition Materials Select Index.

It provides exposure to global producers of copper, lithium, nickel, cobalt, graphite, manganese, silver, and rare earths elements.

Many of these metals show up in our article on the 12 best-performing commodities of 2025.

Betashares explains the ETF's thesis:

The transition from fossil fuels to clean energy solutions is driving growth in a range of disruptive products and processes such as renewable energy generation, battery storage solutions, and electric vehicles, all of which are critically dependent on the select group of ETMs [Energy Transition Metals] that XMET provides exposure to.

Holdings include international shares like First Majestic Silver Corp and Ivanhoe Mines.

There are also Aussie shares like ASX lithium pure-play PLS Group (ASX: PLS) and Lynas Rare Earths Ltd (ASX: LYC).

Just under a third of holdings are in Canada, and nearly 18% are in Australia.

XMET has net assets of $122 million, and the management fee is 0.69%.

Betashares investment strategist, Tom Wickenden, said only two of XMET's 30 stocks recorded negative returns in 2025 and nine of them more than doubled in value.

Global X Green Metal Miners ETF (ASX: GMTL)

GMTL ETF is $14.63 per unit, down 2.2% today and up 94% over the past year.

Global X says this ETF is capitalising on surging demand for green metals and impending global supply crunches for those metals.

GMTL tracks the Bita Global Green Energy Metals Index.

It provides diversified exposure to the global materials and industrials sectors with strategic allocations to green metals such as lithium, copper, nickel, and cobalt.

Among the 49 holdings is Canadian miner, First Quantum Minerals, and US lithium processor, Albemarle Corp.

Aussie names include South32 Ltd (ASX: S32), Lynas Rare Earths, PLS Group, and copper miner, Sandfire Resources Ltd (ASX: SFR).

About a third of holdings are listed in China.

GMTL has net assets of $13 million, and the management fee is 0.69%.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Exchange-Traded Funds (ETFs)

Team celebrating corporate success screaming with joy.
Exchange-Traded Funds (ETFs)

I rate these Vanguard ETFs as buys this month

There are plenty of funds to choose from, but three have caught my attention as long-term investments this month.

Read more »

A group of young people lined up on a wall are happy looking at their laptops and devices as they invest in the latest trendy stock.
Exchange-Traded Funds (ETFs)

3 ASX ETFs I'd recommend to beginners

Starting your investing journey? Here are three funds to consider.

Read more »

ETF written in white on a multi coloured background.
Exchange-Traded Funds (ETFs)

Where to invest $5,000 in ASX ETFs this November

Here are three funds that could be worth considering this month and beyond.

Read more »

AI text on digital display.
Exchange-Traded Funds (ETFs)

I'd rather buy these 3 ASX ETFs than try to pick the next AI superstar

Not sure how to invest in AI? Here are three ways you could do it.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
Exchange-Traded Funds (ETFs)

Already own ASX 200 and S&P 500 ETFs? Here are 3 I'd buy next

Let's dig deeper into why these funds could be top picks.

Read more »

Happy man and woman looking at the share price on a tablet.
Exchange-Traded Funds (ETFs)

Is NDQ the best ETF to buy?

Some of the world's biggest technology companies are driving enormous changes. Is this ETF is the best way to invest…

Read more »

Man working on a big screen which is displaying global information about stocks with data.
Exchange-Traded Funds (ETFs)

Would it be a smart investment to buy the VEU ETF?

The US dominates many investment discussions, but I'm interested in the opportunities available elsewhere.

Read more »

Happy young couple riding a motorbike together.
Exchange-Traded Funds (ETFs)

3 top ASX ETFs for Aussie investors in November

Looking for easy investment options/ These three funds tick a lot of boxes.

Read more »