Green Metal Miners ETF - Global X ETFs - Australia

GMTL


Green Metal Miners ETF

Reasons to Consider GMTL

Support Clean Energy

Structural tailwinds which are backed by government and corporate clean energy transition initiatives.

Critical Resources Exposure

Diversified exposure to the materials sector with strategic allocations to green metals such as lithium, copper, nickel and cobalt.

Growth Potential

Surging demand for green metals and impending supply crunches are set to spark potential growth.

Product Information As of 20 Jun 2024

Inception Date 24 Oct 2022
Management Costs (% p.a.) 0.69
Currency Hedged No
Domicile Australia
Legal Form Managed Investment Scheme
SMSF Eligible Yes

NAV Information As of 20 Jun 2024

NAV/Unit (A$) 7.44050000
Currency (NAV) AUD
Shares Outstanding 350,126
AUM (A$) 2,605,121.87
NAV History File View

Product Summary

Global X Green Metal Miners ETF (GMTL) provides exposure to global companies which produce critical metals for clean energy infrastructure and technologies, including lithium, copper, nickel and cobalt.

Product Objective

Global X Green Metal Miners ETF (GMTL) seeks investment results that correspond generally to the performance, before fees and expenses, of the BITA Global Green Energy Metals Index.

Trading Details

Ticker GMTL
Bloomberg Code GMTL AU Equity
ISIN AU0000233264
Trading Hours 10:00AM – 4:00PM

Management & Administration

Issuer Global X Management (AUS) Limited
Custodian The Hongkong and Shanghai Banking Corporation Limited, Sydney Branch
Registrar Computershare Investor Services Pty Limited

Benchmark Information

Benchmark BITA GLOBAL GREEN ENERGY METALS INDEX
Provider BITA GmbH
Ticker BGGEME

Distributions As of 31 May 2024

12-Month Yield 1.15%
12-Month Franking Level 0.00%
Distribution Frequency Annually
Distribution History View

Performance Table As of 20 Jun 2024

Total Return (Fund) Total Return (Benchmark) Tracking Difference Tracking Error
1 Month -14.12% -14.23% 0.11% 0.66%
3 Months -3.30% -3.22% -0.08% 0.67%
1 Year -20.61% -20.08% -0.53% 0.71%
3 Year p.a. -- -- -- --
5 Year p.a. -- -- -- --
10 Year p.a. -- -- -- --
Since Inception p.a. -15.83% -15.14% -0.68% 1.20%

Top Holdings As of 21 Jun 2024

Net Assets (%) Name SEDOL Market Price (Local) Shares Held Market Value (A$)
6.87 ZIJIN MINING-H 6725299 16.66 56,000 179,350
5.18 ANTOFAGASTA PLC 0045614 21.46 3,305 134,977
5.10 BOLIDEN AB BPYTZ57 348.20 2,656 132,769
4.60 NORSK HYDRO ASA B11HK39 65.10 12,901 119,762
4.45 ALBEMARLE CORP 2046853 93.79 823 115,804
4.28 IVANHOE MINES LT BD73C40 17.98 5,661 111,524
4.06 ALUMINUM CORP-A BP3R4D3 7.64 67,800 106,617
4.04 LUNDIN MINING CO 2866857 14.93 6,441 105,365
4.03 SUMITOMO MET MIN 6858849 4,857.00 2,200 100,992
3.95 FIRST QUANTUM 2347608 17.08 5,501 102,947
3.94 ALCOA CORP BYNF418 38.98 1,754 102,574
3.16 PILBARA MINERALS B2368L5 3.20 26,451 84,643
2.80 CHINA NORTHERN-A BP3R370 17.23 20,800 73,765
2.43 ARCADIUM LITHIUM BM9HZ11 3.30 12,768 63,213
2.37 TIANQI LITHIUM-A BD5CKH8 31.25 9,800 63,035
2.37 GUANGZHOU TINC-A BD5LR63 18.84 16,200 62,820
2.31 CHINA HONGQIAO B44ZV94 12.60 25,500 61,766
2.30 GEM CO LTD-A BD5CFW8 6.52 44,800 60,121
2.13 ZHEJIANG HUAYO-A BFF5BV2 22.80 11,900 55,845
2.07 LYNAS RARE EARTH 6121176 6.05 8,891 53,791
2.02 GANFENG LITHIU-A BD5CB19 29.88 8,800 54,121
1.87 SIBANYE-STI-ADR BL8F9X9 4.64 6,987 48,638
1.81 UMICORE BF44466 14.77 1,985 47,161
1.77 HUDBAY MINERALS B05BDX1 12.16 3,461 46,113
1.74 CAPSTONE COPPER BMY5XY9 9.62 4,305 45,377
1.51 SANDFIRE RESOURC 6739739 8.78 4,408 38,702
1.49 ALUMINA LTD 6954985 1.61 23,167 37,183
1.41 JIANGXI COPPER-A BP3R4R7 24.28 7,400 36,981
1.25 IGO LTD 6439567 5.86 5,824 34,129
1.24 CHINA RARE EAR-A BFY8HG9 25.14 6,200 32,082
1.18 QUIMICA Y-SP ADR 2771122 40.39 507 30,722
1.11 MP MATERIALS COR BN15Y35 13.67 1,409 28,897
1.07 SHENZHEN CAPCH-A BD5LRQ3 29.89 4,500 27,685
1.02 BEIJING EASPRI-A BD760M3 35.79 3,600 26,520
0.78 SHENGHE RESOUC-A BFYQHK7 8.88 11,100 20,288
0.77 SHENZHEN ZHONG-A BD5CLW0 4.30 22,600 20,002
0.75 SICHUAN YAHUA-A BD5LSZ9 9.67 10,300 20,501
0.54 JL MAG RARE-EA-A BKDQ8F5 13.60 5,120 14,332
0.54 ERAMET 4017017 99.00 88 14,014
0.52 CHINA NONFERRO-A BD5CFL7 5.07 12,900 13,462
0.49 BEIJING ZHONGK-A BD5CG69 7.84 8,000 12,909
0.47 CENTURY ALUMINUM 2186254 15.96 506 12,116
0.33 YANTAI ZHENGHA-A BD5LZH0 9.39 4,400 8,504
0.24 INNUOVO TECHNO-A BD73KR9 5.59 5,500 6,328
0.17 CHALICE MINING L B0ZGW28 1.36 3,258 4,431
0.14 GLOBAL ATOMIC CO BF11BK3 1.88 1,757 3,619
Holdings are subject to change.

Sector Breakdown As of 21 Jun 2024

Sector Weight (%)
Materials 95.1
Industrials 3.1
Information Technology 0.5
Other/Cash 1.3

Country Breakdown As of 21 Jun 2024

Country Weight (%)
China 36.4
Canada 15.9
United States 10.0
Australia 7.6
Chile 6.4
Sweden 5.1
Norway 4.6
Japan 4.0
Jersey 2.4
Malaysia 2.1
South Africa 1.9
Other/Cash 3.6

Research

FAQs

  • What are green metals?

    Green metals refer to the minerals needed for the clean energy transition. According to the International Energy Agency, they are: copper, lithium, cobalt, nickel, zinc, aluminium, rare earths, and the platinum group metals. Each mineral is used extensively in the production, transmission, and storage of renewable energy.

    To give some examples, copper and aluminium are required to expand the grid, allowing the transmission of renewable electricity. Lithium, cobalt, and nickel are required for batteries. Zinc is required for galvanising steel, used in offshore wind turbines especially. And rare earth elements are required to build permanent magnet motors, which are used in electric cars.

    *IEA (2021), The Role of Critical Minerals in Clean Energy Transitions, IEA, Paris https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions
  • Why invest in green metals?

    Green metals will be instrumental in helping worldwide efforts to fight global warming. To meet these targets, a seismic shift to renewables is starting to take place. Revenue from green metal mining and production is set to outpace coal well before 2040, according to the IEA. This owes to the volume of these commodities needed to produce cleaner power.

    • It only takes 22 kilograms of copper to make a conventional car, whereas EVs need 53 kilograms alongside other minerals such as lithium and cobalt.
    • Thermal power plants – be they coal fired or gas turbine – require 1 – 1.5 tonnes of copper for every megawatt of electricity they produce. By contrast, an offshore wind farm requires 8 tonnes to produce this output.

    As demand increases for green metals, supply will contract – effectively driving up commodity prices.

    *IEA (2021), The Role of Critical Minerals in Clean Energy Transitions, IEA, Paris https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions
  • How does the ESG screen GMTL uses work?

    Our index provider BITA uses data from Arabesque Partners, an Anglo-German investment management and research firm, to build its ESG screen. Arabesque uses proprietary research to score companies based on their compliance with the four core principles of the United Nations Global Compact. The four principles are: human rights, labour rights, the environment and anti-corruption.

    Each of the four principles are scored separately out of 100 and weighted in such a way that poor performance against any one principle results in a poor overall score (i.e., it cannot be offset by strong scores against other principles). Arabesque uses information from NGO campaigns, public news websites, industry reports, corporate disclosures and other sources to grade companies.

    Companies with overall scores below 40, which is deemed to represent a poor performance against any of the four UNGC principles, are ineligible for the index.
  • How are companies weighted within GMTL?

    Companies in the index are weighted based on market capitalisation. However, the index implements a series of caps to ensure diversification and adequate liquidity.

    As part of this, the index includes an absolute weight cap of 7% on each company. This prevents any company on index rebalance day from taking any more than 7% of the total index weight. The cap is in place to prevent any single company becoming too influential in determining index performance.

    The index also includes a cumulative weight cap, preventing companies that take more than 4.5% of the index collectively taking more than 40% of the total index weight on rebalance day. This prevents any small group of companies becoming too influential in determining performance.
    In addition to these outright weight caps, the index includes a liquidity cap. The liquidity cap prevents any company’s weight in the index being so large that, assuming a $25 million daily inflow, funds tracking the index would be required to buy more than 25% of a company’s 90-day average daily traded value.

    Where any stock exceeds these caps, its excess weight is redistributed proportionally among the rest of the uncapped securities at rebalance according to a formula. Rebalancing occurs semi-annually
  • What type of miners is GMTL exposed to?

    The index identifies companies that make the majority of their gross revenue from mining, processing or trading green metals (copper, lithium, cobalt, nickel, zinc, aluminium, rare earths, and the platinum group metals). In order to ensure diversification, the index limits each metal to having 10 miners, processers, or traders. This means, for example, that there cannot be more than 10 lithium miners or more than 10 copper miners in the index at any given time.

    As companies are required to meet a revenue purity threshold, the index favours more specialised miners. This means, for example that Rio Tinto, despite being among the world’s largest bauxite (aluminium) miners, does not feature in the index as the majority of its revenue comes from iron ore.

    Furthermore, GMTL does not intend to invest in coal miners and has employed an ESG screen to remove fossil fuel companies. This means for example that BHP, despite being one of the world’s largest copper miners, would not qualify for index inclusion presently due to its coal mining.
  • How can I use GMTL in a portfolio?

    We believe that GMTL can be used in a portfolio in three main ways.

    Firstly, it can be used to invest in the energy transition. As much of the demand growth for these metals comes from clean energy technology, these mining companies stand to benefit as the world moves away from fossil fuels.

    Second, it can be used to replace a conventional resources sector allocation in a portfolio. If investors with resource sector allocations believe that coal mining will be less prevalent in the future, or that seaborne iron ore may decline due to increased steel recycling volumes, for example, then GMTL may provide an alternative.

    Third, it can potentially be used as a way to trade the prices of copper, lithium and other energy transition metals. Mining companies share prices tend to be geared to the prices of the commodities that they mine.

Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778, ACN 150 433 828) is the product issuer. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS). In respect of each retail product, Global X has prepared a target market determination (TMD). Each PDS and TMD is available at www.globalxetfs.com.au. The information on this website is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance.

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