SAN DIEGO--(BUSINESS WIRE)--San Diego-based index development firm EQM Indexes LLC is launching a new index, the EQM Rare Earths & Critical Materials Index (CRITNTR) providing exposure to global public companies generating significant revenues from rare earth metals or critical materials mining, production, recycling, processing or refining.
Rare Earth Metals and Critical Materials play a strategically vital role globally, used in everything from smartphones to wind turbines, with important defense and aeronautic applications that also make them essential from a national security standpoint.
Vital Component of Green Energy Technologies - Rare Earths and Critical Materials are a vital component of green energy technologies such as electric vehicles, wind turbines, batteries and solar cells essential for achieving net-zero emission targets.
Critical for Economic and National Security - These metals and materials are also critical for economic and national security, with the United States, Canada, the European Union, and Australia all publishing lists of more than 30 minerals and materials deemed to be of critical importance. Over the past decade, the importance of rare earths and critical materials has impacted geopolitical relations, as China often controls critical supply, and/or processing, and is a dominant producer giving it increased leverage on the world stage.
Limited Supply Amid Rising Demand and Critical Importance - Amid their rising demand and critical importance, rare earth metals and critical materials are in scarce supply, not found in high concentrations and often difficult to source. As a result, the urgency to establish domestic sources has accelerated due to the focus on climate change initiatives, the drive for green energy solutions, and to protect national security interests.
As EQM Indexes Co-Founder and CEO Jane Edmondson explains, “The favorable supply-demand dynamics and paramount importance of rare earth metals and critical materials for green energy solutions and economic and national security make for a compelling investment opportunity. Our more globally diversified, less concentrated approach offers an index vehicle that provides broad exposure to this important theme.”
Top index constituents include: Freeport-McMoran Inc., Norlisk Nickel, Anglo American Platinum, Ganfeng Lithium, and Albermarle Corp. (as of Feb. 14, 2022).
The Index, developed in conjunction with Optica Capital Pty Ltd., has been licensed as an Exchange Traded Fund (ETF) by Exchange Traded Concepts and is expected to be available in March 2022.
EQM Indexes LLC is a woman-owned firm dedicated to creating and supporting innovative indexes that track growth industries and emerging investment themes. Co-founded by Jane Edmondson, a former Institutional Portfolio Manager with more than 30 years in the investment industry, our index design expertise spans a wide range of asset classes and financial instruments. We partner with issuers and work jointly with other index firms to provide benchmarks for Exchange Traded Products (ETPs) such as Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), and other similar products. EQM Indexes LLC also assists firms on a fee basis to design and implement their index ideas. Visit www.eqmindexes.com for more information.