Investors pour in ETFs as Biden firms up climate change policy
The Biden’s administration firm stance on climate change policies has driven investors to pour in ETFs which are ‘driving the future’ such as ETF Securities’ ETFS Battery Tech & Lithium ETF, the firm said.
ETF Securities saw ACDC’s unit price increase by more than 50% over the past year to over $128 million in funds under management (FUM).
“In the past few months alone, we have seen a surge of investors come into ACDC. This high performing ETF offers exposure to global companies developing electrochemical storage technology, mining companies producing battery-grade lithium and manufacturers of electric vehicles,” ETF Securities head of distribution, Kanish Chugh, said.
According to him, battery storage would need to be expanded by 300 times current capacity to meet expected 2050 requirements, after last week, US President Joe Biden announced that the US government would replace its fleet of 650,000 vehicles with electric models.
Chugh stressed that Biden had said he would “rally the rest of the world to meet the threat of climate change” and planned to take legislation to Congress that would set targets for large investment in clean energy, climate research and innovation.
“With the changes planned for the US economy, and the impact they will have in other countries, there is a clear-cut case for investing in the themes driving the future, which is where the ACDC fund is positioned,” Chugh said.
The top holdings in the ACDC portfolio include miners Pilbara Minerals and Galaxy Resources; car makers Tesla Inc, Renault SA and Nissan Motor Co; and lithium product makers GS Yuasa Corp, Livent Corp and AMG Advanced Metallurgical Group.
AUTHOR
Oksana Patron
Recommended for you
Australian fund managers are actively seeking to launch Cayman versions of their funds to attract offshore flows, with Regal Partners set to launch its latest offering this month.
As private markets gain traction in Australia but only a limited pool of talent is available, three recruiters explore whether fund managers should consider looking overseas to find top talent.
With an explosion of private credit managers appearing in the market, two alternatives experts believe a consolidation is needed to maintain the quality of the sector.
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
