The ETF is listed on London Stock Exchange today (14 March), and will also list in Germany on 16 March and in Italy on 30 March.
SETM, which tracks the Nasdaq Sprott Energy Transition Materials Ex-Uranium Index, provides exposure to three categories of materials.
These are materials for clean energy generation, which makes use of rare earths and silver, clean energy transmission, which relies on copper, and clean energy storage, which depends on lithium, nickel, manganese, cobalt and graphite.
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As global governments face increasing pressure to achieve net-zero targets, HANetf expects a surge in demand for the minerals needed to produce, transmit, and store clean energy.
It also anticipates substantial investment for the foreseeable future, as to meet net-zero targets global investment may need to accelerate to a yearly average of $4.2trn from 2026 to 2030, according to the International Energy Agency.
SETM will look to invest in companies that are upstream in the supply chain and that are well-positioned to benefit from the increased investment in the critical minerals necessary for the clean energy transition.
John Ciampaglia, CEO of Sprott Asset Management, said that due to years of underinvestment, demand for many energy transition materials now outstrips supply.
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“We believe mining companies focused on energy transition minerals are well positioned to benefit from the significant investments that will be required over the coming decades,” he added.
Hector McNeil, founder and co-CEO of HANetf, said: “Whether it’s for solar panels or the batteries that power electric cars, a decarbonised world means more demand for critical materials. This presents a potential investment opportunity.”
The ETF is HANetf’s second in partnership with Sprott Asset Management, which is an expert in metals and mining investment.
In May 2022, HANetf listed the Sprott Uranium Miners UCITS ETF (URNM), which has seen its AUM grow to in excess of $55m.
