Global X’s latest thematic ETF aims to hold companies that supply metals and materials it deems critical to cutting-edge industries.
The Global X Disruptive Materials ETF (DMAT) debuted on the Nasdaq Wednesday with an expense ratio of 0.59%.
DMAT tracks a Solactive index of U.S. and foreign companies deriving at least half of their revenues from mining or refining carbon fiber, cobalt, copper, graphite, lithium, manganese, nickel, platinum and palladium, rare earth elements and zinc.
These elements have varying uses for a range of industrial and consumer products, along with having particular use in disruptive industries like renewable energy, robotics and 3D printing.
The index rebalances twice a year, uses natural language processing to select the eligible universe, and requires included securities to have a minimum of $100 million in market capitalization.
DMAT’s closest competitor is the nearly $1 billion VanEck Rare Earth/Strategic Metals ETF (REMX), which charges the same expense ratio.
REMX returned just under 35% over the past 12 months, but has lost 7.62% year-to-date.