iShares Essential Metals Producers

ETF description

This ETF invests in companies around the world whose primary business involves producing ‘essential’ metals, those used in sectors like clean energy, electronics and infrastructure. It tracks the performance of an underlying index made up of firms engaged in mining, refining or processing metals such as copper, lithium, aluminum and other key materials.

This ETF may appeal to an investor who is comfortable with higher levels of volatility and who wants exposure to the metals and mining industry as part of their portfolio.

Issuer details

iShares ETFs are issued and managed by BlackRock, the world’s largest asset management company.

With 800+ products globally and over $2trn in assets (as at June 2024), iShares ETFs are a flexible, low‑cost way for investors to gain exposure to various market segments, including fixed income, emerging markets and broad‑based indexes.

Index details

The Fund aims to achieve a return on your investment, through a combination of capital growth and income on the Fund’s assets, which reflects the return of the S&P Global Essential Metals Producers Index, the Fund’s benchmark index (‘Index’).

The Index aims to reflect the performance of a subset of equity securities of eligible developed and emerging market countries with involvement in the production of metals that are required for the global energy sector’s transition from fossil‑based systems of energy production and consumption to renewable energy sources.

The index offers exposure to transition metal related business grouped into 3 classifications: core metal categories (including copper and lithium), non‑core metal categories (including zinc and silver) and diversified metal categories.

The benchmark seeks to exclude companies classified as Non‑Compliant with Sustainalytics’ Global Standards Screening (‘GSS’). The index provider may also exclude constituents involved in controversial activities as identified by S&P’s annual Media and Stakeholder Analysis.