{"id":16590,"date":"2024-05-30T09:35:57","date_gmt":"2024-05-30T01:35:57","guid":{"rendered":"https:\/\/www.syfe.com\/magazine\/?p=16590"},"modified":"2024-07-30T11:15:18","modified_gmt":"2024-07-30T03:15:18","slug":"materials-etfs-for-the-transition-to-a-low-carbon-economy","status":"publish","type":"post","link":"https:\/\/www.syfe.com\/magazine\/materials-etfs-for-the-transition-to-a-low-carbon-economy\/","title":{"rendered":"3 Materials ETFs for the Transition to a Low-Carbon Economy\u00a0"},"content":{"rendered":"\n
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As the world places increasing importance on clean energy and low-carbon technologies, the significance of raw materials needed to create lower-carbon and clean energy infrastructure cannot be ignored. <\/p>\n\n\n\n

You might be wondering how the influence of materials comes into the picture when at first glance, raw material sourcing seems to contribute to the emissions of greenhouse gases (GHG). <\/p>\n\n\n\n

In fact, according to the World Economic Forum\u2019s Net-Zero Industry Tracker<\/a>, if no effort is made to decarbonise, the GHG emissions by the cement and steel sectors are expected to grow to 31% and 43% by 2050 respectively.<\/p>\n\n\n\n

But here\u2019s how these materials companies can play a crucial role in the transition to a low-carbon economy.<\/p>\n\n\n\n

Simply put, materials are key ingredients for a successful move to a low-carbon economy; for the low-carbon transition to happen, businesses must supply materials such as aluminium, lithium, cobalt and the various rare earths required to build lower-carbon technologies like wind turbines, solar panels and the batteries that power electric vehicles.<\/p>\n\n\n\n

In addition, materials like copper are required to transform the underlying power grid so that they are able to flow energy generated in one part of the network to another, which is essential to the seamless integration of renewable energy sources into the existing energy architecture.<\/p>\n\n\n\n

With this in mind, below are 3 materials-oriented thematic products associated with the low-carbon transition to keep a lookout for.<\/p>\n\n\n\n

iShares Copper and Metals Mining ETF (<\/strong>ICOP<\/strong><\/a>)<\/strong><\/h2>\n\n\n\n
Assets under management (AUM)<\/td>16.91M<\/td><\/tr>
Average daily trading volume<\/td>23,456<\/td><\/tr>
Expense ratio<\/td>0.47%<\/td><\/tr><\/tbody><\/table>
Source: Yahoo Finance, 21 May<\/em><\/figcaption><\/figure>\n\n\n\n

ICOP aims to track the performance of the STOXX Global Copper and Metals Mining Index which consists of companies with significant exposure to the copper mining industry.<\/p>\n\n\n\n

This fund gives investors access to global copper and metal ore miners who may benefit from a growing demand for this limited resource. Its top 10 holdings account for 62.37% of its assets and feature the following companies:<\/p>\n\n\n\n