Investing in the key energy transition
metals and rare earths through miners
The global shift from traditional fossil fuels to renewable energy sources is not just a trend; it’s a critical transformation reshaping our world. Countries are racing to align with the Paris Agreement's ambitious goal of capping global warming at 1.5°c, necessitating a swift and equitable energy transition away from fossil fuel.
This shift is already impacting investment trends. For the first time, global investment in energy transition technologies has surpassed fossil fuel investment, reaching an historic high of US$1.11Trn in 2022 — a 31% increase from the previous year. This surge is not just a fleeting moment; it's a clear indicator of a profound shift in how we power our planet.
Leveraging our vast thematic and commodities expertise, we have developed the WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF which provides diversified, yet targeted access to the value chain of energy transition metals and rare earth elements.
The rising tide of energy transition: a demand surge for key commodities
An accelerated energy transition will boost demand for some mined commodities, circa US$325bn needs to be invested by 2030 to meet the surge of demand for energy transition commodities.
Supply gaps in 2030 for key energy transition metals created by higher demand
Source: Wood Mackenzie, 2023. CE – Carbon Equivalent. Forecasts are not an indicator of future performance and any investments are subject to risks and uncertainties.
WisdomTree carves out a unique solution for tapping the Energy Transition value chain:
At WisdomTree, we understand the pivotal role of metals and rare earth elements in the energy transition. The WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF is meticulously designed to identify and invest in global companies, from both developed and emerging markets, that are integral to the energy transition metals value chain.
Our strategy goes beyond mere selection. Each metal within the energy transition spectrum is weighted based on its significance in energy transition applications, considering factors like market size, exposure, and projected demand growth.
The WisdomTree Energy Transition Metals and Rare Earth Miners UCITS ETF aims to provide exposure to the following 11 metal categories. For each commodity, the strategy looks across the value chain and, depending on the commodity, includes subsectors like:
Stage of value chain | Mining (Upstream) |
Refining (Midstream) |
Smelting (Midstream) |
Conversion (Midstream) |
Chemicals (Midstream) |
Industry |
Aluminium | Yes | Yes | Yes | No | No | No |
Cobalt | Yes | Yes | No | No | Yes | No |
Copper | Yes | Yes | Yes | No | No | No |
Iridium | Yes | No | No | No | No | No |
Lithium | Yes | No | No | Yes | No | No |
Platinum | Yes | No | No | No | No | No |
Silver | Yes | Yes | No | No | No | No |
Tin | Yes | No | Yes | No | No | No |
Zinc | Yes | No | Yes | No | No | No |
Rare Earth Metals (REE) | Yes | Yes | No | No | No | No |
Nickel | Yes | Yes | Yes | Yes | Yes | Yes |
Note: Industry covers upstream and midstream.
For more information, read our Investment Case.
Why WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF?
Our Expert Partner
WisdomTree has extended its thematic equities and commodities partnership in the energy transition space with Wood Mackenzie to offer a solution in energy transition metals and rare earths miners. Wood Mackenzie is a leading energy transition research and consulting firm that has been providing quality data, analytics, and insights used to power the energy, renewables, and natural resources industry for nearly 50 years.
Their expertise in topics including energy, chemicals, metals and mining, and power and renewables make Wood Mackenzie an ideal partner to offer pure exposure to this rapidly evolving theme. Learn more about Wood Mackenzie.