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How to invest in rising metals prices with demand rising and supply squeezed? Mining company shares track metals prices higher. The VanEck S&P Global Mining UCITS ETF offers a simple yet effective way to invest in this powerful theme.
The VanEck S&P Global Mining UCITS ETF tracks the S&P Global Mining Reduced Coal Index. The index has the following parameters:
Broadly diversified across more than 130 mainly large capitalisation stocks.
The mining companies own reserves in gold, silver, copper, nickel, zinc, lithium, iron ore etc.
The priority in VanEck's Mining ETF is given to liquid equities with relatively high trading volumes.
Metals are needed for everything from wind turbines, to solar, to electric vehicles (see below).
| Power Applications | Automotive | Other | |||||||
|---|---|---|---|---|---|---|---|---|---|
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Electric Vehicles |
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| Aluminium |
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| Chronium |
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| Cobalt |
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| Copper |
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| Indium |
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| Lead |
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| Lithium |
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| Molybdenum |
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| Neodymium* |
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| Nickel |
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| Silver |
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| Steel |
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| Zinc |
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Source: BofA Merrill Lynch.
*Proxy for rare earth metals.
Rising demand and tight supply at a time of geopolitical instability is propelling metals prices higher, may offer a hedge against inflation. While demand is growing from green technologies and developing economies, mining companies have been discouraged from developing new resources, resulting in short supply.
The securities of smaller companies may be more volatile and less liquid than the securities of large companies. Smaller companies, when compared with larger companies, may have a shorter history of operations, fewer financial resources, less competitive strength, may have a less diversified product line, may be more susceptible to market pressure and may have a smaller market for their securities.
Investments in natural resources and natural resources companies, which include companies engaged in alternatives (e.g., water and alternative energy), base and industrial metals, energy and precious metals, are very dependent on the demand for, and supply and price of, natural resources and can be significantly affected by events relating to these industries, including international political and economic developments, embargoes, tariffs, inflation, weather and natural disasters, limits on exploration, often changes in the supply and demand for natural resources and other factors.
Investments in emerging market countries are subject to specific risks and securities are generally less liquid and less efficient and securities markets may be less well regulated. Specific risks may be heightened by currency fluctuations and exchange control; imposition of restrictions on the repatriation of funds or other assets; governmental interference; higher inflation; social, economic and political uncertainties.