A forthcoming ETF from adviser Element would invest in the metals used in electric-car batteries.
The Element EV & Solar Battery Materials (Lithium, Nickel, Copper, Cobalt) Futures ETF would be listed on NYSE Arca, according to an initial prospectus filed earlier this month.
The ETF would invest “in a combination of financial instruments that are economically linked to elements necessary for the production of batteries and battery energy storage systems used in electric vehicle, solar and other industries. Such elements are currently lithium, nickel, copper and cobalt,” the filing stated. It would not invest directly in metal commodities but would gain exposure to them through futures contracts.
Total annual expenses for the ETF are set at 95 basis points. The fund would be managed Element ETFs’ William McDonough, John Calvert and John Raymond, as well as subadvisor Vident Investment Advisory’s Ryan Dofflemeyer and Austin Wen.