Global X Launches 'Innovative Materials Theme ETF'

[Asia Economy Reporter Hwang Junho] Mirae Asset Global Investments' U.S. ETF management subsidiary 'Global X' newly listed the 'Global X Disruptive Materials ETF (DMAT)' on the Nasdaq on the 26th (local time), which invests in innovative technology material companies.

Disruptive Materials refer to 10 essential materials used in innovative technologies such as lithium batteries, solar panels, wind turbines, fuel cells, robots, and 3D printers. These include carbon fiber and carbon materials, cobalt, copper, graphene and graphite, lithium, manganese, nickel, palladium and platinum, rare earth elements, and zinc.

This ETF focuses on companies related to materials used as raw materials for innovative technologies, classified into exploration and mining of disruptive materials, production of disruptive materials, and enhancement of disruptive materials.

The ETF's tracking index is the 'SOLACTIVE Disruptive Materials Index.' The index consists of 50 companies whose revenue related to the 10 disruptive materials accounts for more than 50% of their total revenue. The country weightings of the index are led by China at 26.2%, followed by the United States (15.0%), Canada (14.1%), South Africa (13.6%), and Australia (6.4%).

The disruptive materials market is expected to grow rapidly alongside the advancement of innovative technologies such as renewable energy, cleantech, electric vehicles, and digitalization. For example, the global carbon materials industry market size was 355 trillion KRW last year but is expected to increase to 1,000 trillion KRW by 2030, with an average annual growth rate of 10.9%.

Pedro Palandrani, a researcher at Global X, said, "This ETF leverages Global X's expertise in thematic investing to provide investors with a means to invest in the disruptive materials theme." Global X ETFs can be traded through overseas stock accounts at domestic securities firms such as Mirae Asset Securities.