Global X Green Metal Miners ETF (ASX: GMTL)

The Global X Green Metal Miners ETF (GMTL) provides targeted exposure to the essential producers of critical minerals underpinning the global transition to clean energy. As low-emissions power accounts for the vast majority of new electricity generation investment, the demand for metals like lithium, copper, and nickel is forecast to quadruple by 2040.

GMTL tracks the BITA Global Green Energy Metals Index, capturing companies that derive the majority of their revenue from the extraction and production of materials required for electric vehicles, wind turbines, and solar infrastructure.

By employing rigorous ESG screening and individual stock caps, the fund offers a diversified and responsible approach to the resources sector. This investment opportunity positions portfolios to benefit from the seismic shift toward renewables, where the physical intensity of green technologies is expected to drive long-term commodity demand and outpace traditional fossil fuel revenues.

GMTL provides exposure to global companies which produce critical metals for clean energy infrastructure and technologies, including lithium, copper, nickel and cobalt. GMTL seeks investment results that correspond generally to the performance, before fees and expenses, of the BITA Global Green Energy Metals Index (the “Index”).

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.

• In 2023 low-emissions power is expected to account for almost 90% of total investment in electricity generation¹.
• Building clean energy technology - like electric cars, offshore wind turbines and solar arrays – requires far more metal than fossil fuel alternatives.
• If climate pledges are honoured, demand for clean energy technologies backed by green metals could quadruple by 2040, with some metals, such as lithium, forecast to be in deficits for years².

¹ (IEA50, 2023) https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions

² (United Nations Climate Change, 2023) https://unfccc.int/process-and-meetings/the-paris-agreement

Green metals refer to the minerals needed for the clean energy transition. They are; copper, lithium, cobalt, nickel, zinc, chromium, aluminium, rare earths and 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. 

Green metals will be instrumental in helping worldwide efforts to fight global warming. The Paris Agreement in 2015 was pivotal in uniting governments and corporations alike with a common goal to reach net-zero carbon emissions by 2050¹.

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.

¹ (United Nations Climate Change, 2023) https://unfccc.int/process-and-meetings/the-paris-agreement

• To express a medium to long term view on targeted commodities with increasing demand to support the transition to renewable and clean energy technologies.
• GMTL offers access to the resources sector with an ESG tilt which works to restricts fossil fuel companies.

• GMTL tracks the BITA Global Green Energy Metals Index.
• It includes companies which make more than 50% of their revenue mining or producing green metals (with respect to minimum market capitalisation and liquidity requirements).
• ESG screening identifies companies observing reasonable industry standards and ensures miners which rate poorly are excluded.
• An individual stock cap of 7% is implemented to prevent large companies from swaying the index too heavily.
• Allocations are capped such that a maximum of ten stocks are included per mineral group to ensure diversification.

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Global X Management (AUS) Limited is the issuer of units in Global X Green Metal Miners ETF. The publication and administration of the Index by BITA GmbH does not constitute a recommendation for capital investment and does not contain any assurance or opinion of BITA GmbH regarding a possible investment in a financial instrument based on this Index. None of the Information or BITA index or other product or service delivered by BITA GmbH constitutes an offer to buy or sell, or a promotion, sponsorship, or recommendation of, any security, financial instrument or product or trading strategy. BITA GmbH does not make any claim, prediction, warranty, or representation whatsoever, expressly or impliedly, either as to the accuracy, timeliness, completeness, merchantability of any information or results to be obtained from the use of any BITA Index and/or Index Value at any time or in any respect. BITA Indexes are calculated and published by BITA GmbH on a "Best Effort" basis. This document is issued by Global X Management (AUS) Limited (“Global X”) (Australian Financial Services Licence Number 466778) and Global X is soley responsible for its issue. This document may not be reproduced, distributed or published by any recipient for any purpose. Under no circumstances is this document to be used or considered as an offer to sell, or a solicitation of an offer to buy, any securities, investments or other financial instruments. Offers of interests in any retail product will only be made in, or accompanied by, a Product Disclosure Statement (PDS) which is available at www.globalxetfs.com.au. In respect of each retail product, Global X has prepared a target market determination (TMD) which describes the type of customers who the relevant retail product is likely to be appropriate for. The TMD also specifies distribution conditions and restrictions that will help ensure the relevant product is likely to reach customers in the target market. Each TMD is available at www.globalxetfs.com.au. The information provided in this document is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information in this document, 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. This document has been prepared by Global X from sources which Global X believes to be correct. However, none of Global X, the group of companies which Mirae Asset Global Investments Co., Ltd is the parent or their related entities, nor any of their respective directors, employees or agents make any representation or warranty as to, or assume any responsibility for the accuracy or completeness of, or any errors or omissions in, any information or statement of opinion contained in this document or in any accompanying, previous or subsequent material or presentation. To the maximum extent permitted by law, Global X and each of those persons disclaim all any responsibility or liability for any loss or damage which may be suffered by any person relying upon any information contained in, or any omissions from, this document. 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. None of Global X, the group of companies of which Mirae Asset Global Investments Co., Ltd is the parent, or their related entities, nor any respective directors, employees or agents guarantees the performance of any products issued by Global X or the repayment of capital or any particular rate of return therefrom. 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.