Sprott Asset Management announced the launch of the Sprott Nickel Miners ETF (Nasdaq: NIKL), an ETF focused on nickel mining companies that provide a mineral necessary for the clean energy transition.
NIKL seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Nickel Miners Index. The index is designed to track the performance of a selection of global securities in the nickel industry, including nickel producers, developers, and explorers.
John Ciampaglia, CEO of Sprott Asset Management, said in a news release announcing the fund’s launch that the firm believes “nickel producers are well positioned to benefit from the significant investment required to fund the energy transition.”
“Nickel is a vital component in the rechargeable batteries used for hybrid and electric vehicles [EVs] and clean energy storage,” Ciampaglia added. “Automakers have begun adding more nickel to EV batteries to increase their drivable range. Demand for this critical mineral for use in EVs and battery storage may increase nearly 20 times by 2040, relative to 2020.”
NIKL joins Sprott’s suite of energy transition-focused ETFs, which is focused on the investment opportunity of the critical minerals needed to generate, transmit, and store cleaner energy. Funds in this suite include the Sprott Energy Transition Materials ETF (SETM), the Sprott Lithium Miners ETF (LITP), and the Sprott Uranium Miners ETF (URNM), among others.
“Combatting climate change through clean energy investments remains a priority for many advisors, so it a great to see a new ETF tied to the mining companies exposed to the long-term trend,” said VettaFi’s head of research Todd Rosenbluth.
NIKL has an expense ratio of 0.75%.
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