WisdomTree has expanded its range of thematic exchange-traded funds (ETFs) with the launch of the WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF (RARE).
RARE seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Energy Transition Metals and Rare Earths Miners Index and has a total expense ratio (TER) of 0.50%. The WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF (RARE), has listed on Börse Xetra, Borsa Italiana and the London Stock Exchange.
The proprietary Index is designed to track the performance of listed companies from developed and emerging markets, primarily involved in the energy transition metals value chain including the exploration and processing of rare earths elements and that meet WisdomTree’s ESG (environmental, social and governance) criteria. Aligning with WisdomTree’s approach to building thematic ETFs that provide pure and differentiated exposures, WisdomTree has partnered with Wood Mackenzie, a leading energy transition research and consulting firm. The stock selection for the Index is informed and driven by the unrivalled expertise and market intelligence from Wood Mackenzie.
1.5 degree scenario
According to Wood Mackenzie’s 1.5 degree scenario[2], electrification and renewables underpin the reduction in CO2 emissions. The 1.5 scenario requires an estimated $60tn of capital expenditure by 2050, with electrification requirements, utilising solar and wind, driving investment flows. The energy transition will be metal intensive and a positive for the crucial metals and miners involved in the energy transition value chain.
The Index tracked by the WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF includes companies involved in the exploration and processing of metals used in technologies associated with energy transition themes. These technologies include electric vehicles, transmission, charging, energy storage, solar, wind, and hydrogen. The Index aims to provide exposure to the energy transition value chain through companies involved in crucial metal categories including lithium, nickel, cobalt, copper, iridium, aluminium, zinc, tin, silver, platinum and rare earth elements and sub-sectors such as mining, refining or smelting.
Chris Gannatti, Global Head of Research, WisdomTree, said: “A key outcome from COP28[3] was more policy support to pivot away from carbon intensive forms of energy, with leaders agreeing to triple renewable energy capacity by 2030. The transition to more renewable and sustainable energy sources could be the largest driver of metal demand over the coming decades. Metals like copper, nickel, aluminium, cobalt and lithium will need to see increased levels of extraction so that the technologies required to reach the climate targets set out in the Paris Agreement can be built. Wind turbines, for example, have traditionally relied on gearboxes, but direct drive turbines are becoming more popular offshore which is likely to reduce copper intensity but increase rare earth demand. Meanwhile as solar photovoltaic manufacturers seek out efficiency gains, they are likely to increase their silver usage. With the supply shortages currently being experienced, companies involved in the energy transition metals value chain will need to play an integral role as the race to extract more crucial metals takes centre stage.”
The launch of RARE expands WisdomTree’s partnership with Wood Mackenzie and is the fifth ETP WisdomTree has launched leveraging Wood Mackenzie’s market intelligence and expertise.
Alexis Marinof, Head of Europe, WisdomTree, added: “RARE complements our existing line-up of energy transition focused ETFs and ETPs, allowing investors to allocate capital directly to the crucial sectors enabling the energy transition through metal production. The new ETF is a natural extension of our European product range, combining our deep expertise in commodities with our thematics capabilities. Through this approach we’re able to bring investors a pure and unique equity exposure to miners involved in the extraction of key metals required in the energy transition.”
WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF is the latest addition to a suite of WisdomTree ETFs and ETPs providing investors access to the energy transition. WisdomTree’s energy transition range consists of WisdomTree California Carbon (WCCA), WisdomTree Carbon (CARB), WisdomTree Recycling Decarbonisation UCITS ETF (WRCY), WisdomTree Battery Solutions UCITS ETF (VOLT), WisdomTree Global Automotive Innovators UCITS ETF (WCAR), WisdomTree Renewable Energy UCITS ETF (WRNW) and WisdomTree Energy Transition Metals (WENT) and WisdomTree Battery Metals (WATT).
WisdomTree Energy Transition Metals and Rare Earths Miners ETF details
| Name | TER | Exchange | Trading Currency | Exchange Code | ISIN |
| WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF | 0.50% | London Stock Exchange | USD | RARE | IE000KHX9DX6 |
| WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF | 0.50% | London Stock Exchange | GBx | WREE | IE000KHX9DX6 |
| WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF | 0.50% | Borsa Italiana | EUR | RARE | IE000KHX9DX6 |
| WisdomTree Energy Transition Metals and Rare Earths Miners UCITS ETF | 0.50% | Börse Xetra | EUR | RARE | IE000KHX9DX6 |
