Renewable Energy-Focused Element Funds Launches EV Batteries ETF
Element Funds, a new investment firm focused on the renewable energy economy, launched its first exchange traded fund (ETF) focusing on key elements that comprise the electric vehicle and energy storage markets.
The ETF – Element EV, Solar & Battery Materials (Lithium, Nickel, Copper, Cobalt) Futures Strategy (CHRG) will provide exposure to futures contracts of commodities such as lithium, cobalt, nickel and copper, which are elements deemed “necessary for the adoption of battery technology,” according to the fund’s prospectus.
CHRG has an expense ratio of 0.95%, according to the prospectus.
The new fund will be managed by John Raymond and John Calvert, principals at the natural resources-focused private equity firm, The Energy & Minerals Group.
“Over the past several years, we’ve seen enormous investor demand in strategies linked to the EV and renewables revolution,” said Will McDonough, CEO of Element Funds.
The new fund is part of a growing trend of commodity ETFs launched last year focused on EV battery production. CHRG is at least the fourth ETF dedicated to electric vehicle batteries.
Since CHRG invests in metal commodities’ futures, it’s not exposed to price fluctuations based on demand for lithium, nickel, copper and other metals, according to its prospectus. It’s also not affected by factors such as political, operations and management risks attached to the mining of these raw materials.
