Assets Under Management AUM

Aberdeen Launches New Industrial Metals ETF, BCIM

Aberdeen is strengthening its range of commodity ETFs with the launch of a new fund that will track an industrial metal price index.

The abrdn Bloomberg Industrial Metals Strategy K-1 Free AND F (BCIM) will seek to provide investment results that closely match, before fees and expenses, the performance of the Bloomberg Industrial Metals Total Return SubindexSM. The index consists of four commodity futures contracts for aluminum, copper, nickel and zinc.

Steve Dunn, Head of ETFs at abrdn, comments: “The world is in the early stages of a huge energy transition from fossil fuels to more sustainable sources. Almost all renewable energy systems use large amounts of industrial metals, including electric vehicles, wind turbines, solar panels, grid-level batteries, and carbon capture systems. This huge long-term structural demand will lead to a significant new demand for industrial metals, a trend that this AND F opens investors to.

This is the first product launched in the United States under the new abrdn brand and is part of the region’s growth plans. These growth plans focus on the growth of customer solutions, passive alternatives, private markets and spaces specializing in equities; while distributing a targeted line of products manufactured outside of the region and generating high quality investment research in US markets for products managed elsewhere in the Company’s network.

The new product will join the trend of “K-1 Free” commodity ETFs, which do not issue K-1 tax forms that have historically deterred clients from investing in the space. abrdn was among the pioneers of this trend, with abrdn Bloomberg All Commodity Strategy K-1 Free AND F (BCI). The launch also comes after a period of significant growth for abrdn’s AND F which went from around $ 3 billion in client management three years ago to $ 6.9 billion in September 2021. Three of the previous five metal ETFs in the lineup have crossed the $ 1 billion mark. dollars in assets under management.

Commenting on the region’s growth strategy, CEO for the Americas Chris Demetriou, commented: “I am delighted that we are launching this new product at a time when demand for industrial metals is only growing, and investors are looking for uncorrelated investments to act as a hedge against inflation. and other market risks. Part of our strategy in the region revolves around competition in areas where our experience and expertise give us an advantage. This extension of our raw materials franchise reflects this strategy. Our AND F AT M has more than doubled in the past three years to nearly $ 7 billion today.

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