Banking

WisdomTree launches pair of thematic metal ETPs

The $80.3bn firm has today launched the passively-managed WisdomTree Energy Transition Metals ETC (WENT) and the WisdomTree Battery Metals ETC (WATT), which track the WisdomTree Energy Transition Metals Commodity Index TR and the WisdomTree Battery Metals Commodity Index TR respectively.

WENT is designed to capture the “demand and growth” of certain metals involved in energy transition technologies under Paris climate targets.

Key metals include electric vehicles, transmission, charging, energy storage, solar, wind and hydrogen power production. The index is currently comprised of copper, nickel, aluminium, silver, zinc, tin, platinum and gold.

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“While it is clear that certain commodities are needed to progress the energy transition, it is less clear whether sufficient production of those commodities will take place. Increased demand and supply constraints could propel many commodities for years to come,” said Nitesh Shah, head of commodities & macroeconomic research, Europe, WisdomTree.

WATT will provide investors with exposure to the battery theme, a sub-set of the energy transition trend, including to electric vehicles, charging and energy storage.

Both funds are listed today on the LSE, Borsa Italiana and Borse Xetra. Management fees are set at 45bps.

Alexis Marinof, head of Europe, WisdomTree, added: “As the focus on climate change mitigation increases and the energy transition accelerates, specific metals are required to power any decarbonisation efforts.

“We are now able to deliver a range of ETPs focused on energy transition and battery themes and are applying our successful expert-driven thematic equities approach to new commodities indices, a revolutionary move and a first for the commodities space.”

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