Global Palladium Fund launches world’s first physically-backed Electric Vehicle Metals ETC
Global Palladium Fund, the specialist provider of physically-backed metal Exchange Traded Commodities (ETC), announced today the launch of the Global Palladium Fund Physical Electric Vehicle Metals ETC.
Metals are essential to the energy transition and critical materials for electric vehicles. This new ETC provides investors with a simple and cost-effective way of accessing these metals, bringing potential diversification and inflation-hedging benefits to portfolios.
The ETC is backed by physical metal and will track the performance of the Solactive GPF Electric Vehicle Index. The bespoke index is made up of metals based on their use across four electric vehicle segments: battery (BEV), hybrid (HEV), plug-in hybrid (PHEV) and fuel cell (FCEV).
Metals weights (capped at a maximum of 40%) in the index basket are: Copper (40%), Palladium (28.13%), Nickel (18.65%), Cobalt (11.45%), and Platinum (1.77%), with metals stored in LME warehouses in Rotterdam and LPPM vaults in London and Switzerland. The index will be rebalanced annually in July to reflect evolving use of metals across the different segments, and includes the scope to introduce additional metals subject to use and availability.
“The growth in consumer appetite for electric vehicles in recent years has been phenomenal, and we are just at the start of this mega trend to replace the internal combustion engine. When approaching this theme, it can be hard for investors to know which equities to select, particularly when valuations are stretched and it is unclear which technologies or companies will be the winners. GPF is providing investors with an innovative physically-backed solution that offers a unique and diversified risk and return profile compared to traditional equity-based investments,” says Alexander Stoyanov, Global Palladium Fund CEO.
“We are particularly excited that it’s the first time a physically-backed basket of metals including base metals such as cobalt, copper and nickel, is being made available to investors. At a time when investors are looking for diversification, the GPF Physical Electric Vehicle Metals ETC provides simple and transparent access to key metals used in electric vehicles. Exposure to the metals will help investors to hedge price risk as competition for access to key raw materials gathers pace,” explains Timothy Harvey, Head of Business Development at Global Palladium Fund.
GPF Physical Electric Vehicle Metals ETC
The Global Palladium Fund Physical Electric Vehicle ETC is being launched with $10m of seed capital, and listing initially on Borsa Italiana. Listings on Deutsche Börse, London Stock Exchange and SIX will be announced in the coming weeks. It will have a Total Expense Ratio (TER) of 0.80%.
For more information on the GPF range of ETCs, please visit https://gpfmetals.com
For professional investors only. Capital at risk.
Solactive GPF Electric Vehicle Index (Bloomberg: SOLGPFEV Index)
Index data has been live since 21 July 2021. The index has a low correlation with major benchmarks as highlighted in the following matrix, which covers the period from 21 July 2021 to 27 January 2022. The data is sourced from Bloomberg.
Solactive is a Germany-based index provider. Since 2007, it has been developing tailor-made and multi-asset class index solutions for ETFs and other index-linked investment products for leading global investment banks and asset managers. For more information on Solactive and the index please visit https://solactive.com/