Invesco Ltd. is unveiling an exchange-traded fund for metals used to manufacture electric vehicles, according to a report by The Wall Street Journal on Wednesday.
The new fund shows the growing investor appetite for commodities and products linked to the energy transition.
The new fund for metals, referred to as the Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF, is set to be the first commodity fund linked to the transition away from fossil fuels.
It will hold futures contracts and other financial products tracking prices of metals like copper, nickel, cobalt, and aluminum, in high demand for their uses in electric cars and other clean-energy projects.
Current funds for investing in electric cars usually hold shares of battery companies and metals products rather than assets linked to metals prices.
The creation of the new ETF emerges with prices for many metals surging to near records, with automakers and legislators concerned that supply shortages will hurt the production of electric vehicles. DBC up +0.29%, COPX up +3.42%