First Trust lists four new ETFs to the LSE

Launch of First Trust Indxx^TM Future Economy Metals UCITS ETF and First Trust Bloomberg Scarce Resources UCITS ETF on the London Stock Exchange

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Rupert Haddon Managing Director at First Trust Global Portfolios

Launch of First Trust Indxx^TM Future Economy Metals UCITS ETF “METL”

First Trust introduces the First Trust Indxx^TM Future Economy Metals UCITS ETF on the London Stock Exchange, expanding its thematic family of ETFs. METL aims to provide investors with strategic exposure to the companies producing the metals and minerals necessary for the energy transition and computing revolution to accelerate. Enabling the infrastructure of the future economy to be built.

In today’s evolving economic landscape, technologies crucial for the future, including semiconductors, wind turbines, energy storage, and electric vehicles (EVs) and their batteries, heavily rely on certain metals, rare earth elements and other critical elements. This dependency creates a compelling investment opportunity for companies involved in the extraction, processing, and supply of these materials.

METL strategically targets three segments of metal and mineral production:

Sustainable Energy Metal Providers: As the world transitions towards clean energy sources, there’s a projected surge in demand for metals like copper, offering significant growth potential for companies involved in sustainable energy solutions.

NextGen Mobility Metals: Metals like lithium play a vital role in the production of batteries, electric vehicles (EVs) and their infrastructure.

Future Tech Metals: Semiconductors and other essential components of tomorrow’s electronic devices rely on specific metals, like silicon and germanium presenting opportunities for companies at the forefront of technological advancements.

Rahul Sen Sharma, President and Co-CEO at Indxx said, “Metals and minerals are instrumental in propelling the shift from fossil fuels to renewable energy, electric vehicles, and hydrogen production. The International Energy Agency (IEA) anticipates a six-fold rise in mineral demand by 2050, owing to the shift towards a carbon-free economy. Our Global Future Economy Metals Index offers exposure to companies facilitating this transition. We are thrilled to collaborate with First Trust in bringing this innovative strategy to the European market.”

Commenting on the launch, Rupert Haddon, Managing Director, remarked: “METL offers investors a unique opportunity to gain exposure to companies enabling the future economy through their involvement in the critical supply chain of more well-known metals like copper and aluminium as well as rare earth and other critical materials. As technologies like AI and solar advance, the companies producing the necessary metals should be poised for growth.

Haddon continued: “We are thrilled to launch the First Trust Indxx Future Economy Metals UCITS ETF, empowering investors to participate in the potential growth of companies providing the infrastructure of the future economy.”

The Fund is aimed at wealth managers, discretionary fund managers, advisers and institutional investors, has total expense ratio of 0.65%, and will available in the GBP and USD share class from today.

The Fund is structured to provide targeted exposure to these pivotal sectors, identifying companies crucial to the future economy’s foundation. METL commences trading on the London Stock Exchange today, offering investors a gateway to the opportunities arising from the increasing demand for rare earth and critical materials.

Launch of the First Trust Bloomberg Scarce Resources UCITS ETF “SCAR”

First Trust today announces the launch of the First Trust Bloomberg Scarce Resources UCITS ETF. The Fund offers focused exposure to emerging geopolitical and energy security trends by investing in companies that actively address global resource challenges. Listing today on the London Stock Exchange, SCAR seeks to provide pure-play exposure to a select group of companies engaged in the production of real or hard assets that have finite supply or capacity for production and seeks investment results that correspond generally to the price and yield (before fees and expenses), of the Bloomberg Scarce Resources Index.

The Bloomberg Scarce Resources Index is constructed by grouping the components of the Bloomberg World Aggregate Equity Index into five distinct categories based on their Bloomberg Industry Classification System (BICS) code. These five categories, where resource scarcity is combined with potential long-term tailwinds, are expected to play pivotal roles in the evolving global landscape and are strategically positioned for potential future growth:

Fuel: Increased geopolitical tensions, limited supplies, strong demand and underinvestment are expected to keep energy prices elevated in the medium term.

Security: Defence expenditures reaching a record high last year, with further anticipated growth expected, means the aerospace and defence sector may be poised to benefit from heightened security concerns.

Clean & Renewable Energy: Companies providing essential components for battery storage, wind and solar energy are playing a pivotal role in shaping the energy revolution. An acute shortage of components for these clean technologies poses risks to the entire energy sector.

Agriculture: Amidst rising global food demand, the agriculture industry presents attractive investment potential driven by equipment shortages, rising input costs, lower crop yields caused by climate extremes, and decreasing farmland.

Rare and precious metals: The transition to clean energy and manufacturing of cutting edge semiconductors will be mineral-intensive, creating massive demand for a wide range of rare and precious metals.

The top ten issuers by market capitalisation within each category are selected for inclusion in the index for a total of 50 stocks, with a 20% weighting to each of the five categories. The Index is reconstituted and rebalanced semi-annually.

Allison Stone, Head of Multi-Asset Product, Bloomberg Index Services Limited, said: “We’re proud to see First Trust bring their product to market with the Bloomberg Scarce Resources Index, which we designed to incorporate companies providing the essential resources that form the bedrock of societal needs, such as food, energy, base metals & materials, and security. Thanks to the BICS classifications we’ve selected to navigate index inclusion, the companies represented will be those benefiting as global competitors as demand rises for these resources.”

Rupert Haddon, Managing Director at First Trust Global Portfolios said: “The ongoing shifts stemming from global conflicts, inflation, and escalating energy demands are set to remain significant themes for the foreseeable future. As demand continues to outpace supply, we believe the competition for limited resources will intensify, granting companies providing these essential products and services continued pricing power. These critical sectors stand to benefit from this trend and play an important role in the evolving global landscape. This presents compelling opportunities for investors.”

Haddon continued: “We are delighted to be able to bring the First Trust Bloomberg Scarce Resources UCITS ETF to the market, giving investors the chance to tap into these pivotal global themes through a cost-effective, highly liquid UCITS investment vehicle.”

The Fund is aimed at wealth managers, discretionary fund managers, advisers and institutional investors, has total expense ratio of 0.65%, and will be available in GBP and USD share class from today.

Source: ETFWorld