Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF is a new product in the market and focuses on metals used in electric vehicles, according to the WSJ.
Invesco says it believes the new product is the first commodity fund that is linked to the ongoing shift from fossil fuels. Existing funds for investing in EVs typically hold stocks of battery companies and metal producers instead of assets related directly to the prices of metals.
The ETF will hold futures contracts and financial products that track metals used in electric cars and other clean energy projects. The metals include copper, cobalt, nickel, and aluminum.
The new ETF will be actively managed and will be rebalanced on a biannual basis. The fund carries a 0.59% expense ratio.
Invesco’s head of fixed income and alternatives ETF product strategy, Jason Bloom, says the new fund has been in preparation for over a year. He attributed the product to investors’ demand.
The debut of the new ETF coincides with the rising prices of many metals, with the EV sector grappling with supply chain shortages. The demand for metals such as copper has also been on the rise as miners face pressure to cut their carbon footprint.