PRESS ROOM
WisdomTree Launches Pair of Innovative Thematic Metals ETPs
Wednesday 20th April '22
WisdomTree, the exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor, has expanded its commodities ETP range with the launch of a pair of thematic metal ETPs providing exposure to energy transition and battery themes.
Listed today on the London Stock Exchange, Borsa Italiana and Börse Xetra, the WisdomTree Energy Transition Metals ETC (WENT) and WisdomTree Battery Metals ETC (WATT) track innovative proprietary indices and have a management expense ratio of 0.45%. Before fees and expenses, WENT seeks to track the performance of the WisdomTree Energy Transition Metals Commodity Index TR, while WATT seeks to track the performance of the WisdomTree Battery Metals Commodity Index TR.
Expanding its partnership with Wood Mackenzie, a leading energy transition research and consulting firm, WisdomTree has developed the index strategies with the holdings and weightings of the two baskets designed to capture the demand and growth of specific metals involved in energy transition technologies under the 2-degree scenario1. Wood Mackenzie’s market intelligence has already been leveraged by WisdomTree to inform the index strategy framework for its multi-award-winning battery solutions ETF, VOLT2 which captures the battery value chain.
The WisdomTree Energy Transition Metals ETC allows investors to access the key metals involved in the energy transition megatrend including 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.
The WisdomTree Battery Metals ETC allows investors to access the key metals involved in the battery theme, a sub-set of the energy transition megatrend, including electric vehicles, charging and energy storage. The index is currently comprised of nickel, aluminium, copper, and zinc.
The indices are reconstituted on an annual basis in January and with a quarterly review process to assess if additional commodity metals, such as cobalt and lithium, can be added depending on the inclusion criteria such as liquidity.
Nitesh Shah, Head of Commodities & Macroeconomic Research, Europe, WisdomTree, said: “COP26 has put climate change and the energy transition back in the spotlight for investors. Policy is starting to catch up to the concerns around the need to decarbonise at a faster pace to align with the Paris Agreement in seeking to keep global warming to well below 2°C, compared to pre-industrial levels. 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.”
The global economy needs to service the demands of an estimated 10 billion people by 20503 – 25% more than today’s nearly 8 billion – while reducing net greenhouse gas emissions levels by 100% over the same period. In order to facilitate the required energy transition and support the proliferation of electric vehicles, energy storage, charging, electricity transmission and distribution cables, solar and wind generation there is expected to be unprecedented levels of demand for certain mined commodities.
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. These innovative ETPs complement our existing product range, combine our commodities and thematic ETF expertise to delivery truly unique exposures which power the energy transition, arguably the most important megatrend, and seek to address the threat of climate change.”
WisdomTree offers the most comprehensive range of commodity ETPs in Europe, with circa $24.5bn4 in assets under management across its platform.
WENT and WATT are registered for sale in Austria, Germany, Ireland, Italy, Norway and the UK.
Product information
Share Class Name |
MER |
Exchange |
Trading Ccy |
Exchange Code |
ISIN |
0.45% |
LSE |
USD |
WATT |
XS2425842106 |
|
0.45% |
LSE |
GBx |
AMPS |
XS2425842106 |
|
0.45% |
Borsa Italiana |
EUR |
WATT |
XS2425842106 |
|
0.45% |
Xetra |
EUR |
WATT |
XS2425842106 |
|
0.45% |
LSE |
USD |
WENT |
XS2425848053 |
|
0.45% |
LSE |
GBx |
NRGT |
XS2425848053 |
|
0.45% |
Borsa Italiana |
EUR |
WENT |
XS2425848053 |
|
0.45% |
Xetra |
EUR |
NRGT |
XS2425848053 |
Sources
1 The 2-degree scenario is the upper limit of temperature change under the legally binding international treaty on climate change (Paris Agreement). Source: United Nations Climate Change
2 VOLT refers to the WisdomTree Battery Solutions UCITS ETF
3 Source: Wood Mackenzie
4 WisdomTree, as of 31 March 2022