ISIN: IE00BDFBTQ78
Risk: Investing is subject to risk, including the possible loss of principal. Investors should be aware of the Main Risk Factors such as risk of investing in natural resources companies, emerging markets risk and risk of investing in smaller companies which are described below and in the sales prospectus.
How to invest in rising metals prices with demand rising and supply squeezed? Mining company shares track metals prices higher. The VanEck Global Mining UCITS ETF offers a simple yet effective way to invest in this powerful theme.
Metals are needed for everything from wind turbines, to solar, to electric vehicles (see below).
Source: BofA Merrill Lynch. Data as of December 2020.
*Proxy for rare earth metals.
Rising demand and tight supply at a time of geopolitical instability is propelling metals prices higher, offering a hedge against inflation. While demand is growing from green technologies and developing economies, mining companies have been discouraged from developing new resources, resulting in short supply.
The VanEck Global Mining UCITS ETF tracks the EMIX Global Mining Index. The index has the following parameters:
Broadly diversified across more than 150 mainly large capitalisation stocks.
The mining companies own reserves in gold, silver, copper, nickel, zinc, lithium, iron ore etc.
Priority is given to liquid equities with relatively high trading volumes.
ISIN: IE00BDFBTQ78
Lower risk: Typically lower reward
Higher risk: Typically higher reward
Investments in natural resources and natural resources companies, which include companies engaged in agriculture, alternatives (e.g., water and alternative energy), base and industrial metals, energy, forest products and precious metals, are very dependent on the demand for, and supply and price of, natural resources and can be significantly affected by events relating to these industries, including international political and economic developments, embargoes, tariffs, inflation, weather and natural disasters, livestock diseases, limits on exploration, often changes in the supply and demand for natural resources and other factors.
Investments in emerging market countries are subject to specific risks and securities are generally less liquid and less efficient and securities markets may be less well regulated. Specific risks may be heightened by currency fluctuations and exchange control; imposition of restrictions on the repatriation of funds or other assets; governmental interference; higher inflation; social, economic and political uncertainties.
The securities of smaller companies may be more volatile and less liquid than the securities of large companies. Smaller companies, when compared with larger companies, may have a shorter history of operations, fewer financial resources, less competitive strength, may have a less diversified product line, may be more susceptible to market pressure and may have a smaller market for their securities.
For more information on risks, please see the “Risk Factors” section of the relevant Fund’s prospectus, available on www.vaneck.com.
In early March, gold breached $2,000 an ounce for the first time since August 2020. Buoyed by its reputation as a safe haven, the metal has rallied sharply since Russia invaded Ukraine raising uncertainty in Europe to levels not seen in a generation.
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