KraneShares Debuts Metals ETF

KraneShares Debuts Metals ETF

The fund focuses on metals-related commodity futures.

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Reviewed by: Shubham Saharan
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Edited by: Shubham Saharan

KraneShares’ newest exchange-traded fund brings investors a metals-focused option “needed for the electrification of the global economy.”  

The KraneShares Electrification Metals ETF (KMET) launched Thursday on the New York Stock Exchange. The price was little changed at $25.13, and several hundred shares traded, according to Yahoo Finance data.  

The fund tracks the Bloomberg Electrification Metals Index, which follows futures contracts on metals such as aluminum, copper and nickel, according to a company statement. The ETF has an expense ratio of 0.79%. 

The transition to low-carbon technologies is boosting demand for metals, KraneShares said in a presentation.  

“Now is the time to invest in these electrification metals as demand is poised to accelerate into the energy transition,” Luke Oliver, head of strategy at KraneShares, said in the statement. 

Still, the fund’s launch comes at a precarious time. More than 60% of copper stores on the London Metal Exchange were sourced from Russia, according to a report this week from Reuters. As the Russia-Ukraine war continue, some buyers are refusing to buy Russian metals in 2023, causing prices to soar.  

Aluminum futures listed on the LME rose nearly 3.1% during midday trading, while COMEX copper futures climbed 0.23%. KMET’s closest competitor, the Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF (EVMT), rose 2.5% midday after a bout of turbulence earlier this month, according to ETF.com data. 

New York-based KraneShares’ parent, Krane Fund Advisors, is majority owned by China International Capital Corp., a Beijing-based investment bank. 

 

Contact Shubham Saharanat[email protected] 

Shubham Saharan is a markets reporter at etf.com. Before joining the company, she reported for Bloomberg and the Financial Times. Saharan is a graduate of Barnard College of Columbia University.