abrdn is building on its range of commodities ETFs with the launch of a new fund that will track an index of industrial metal prices.
The abrdn Bloomberg Industrial Metals Strategy K-1 Free ETF will seek to provide investment results that closely correspond, before fees and expenses, to the performance of the Bloomberg Industrial Metals Total Return SubindexSM. The Index consists of four commodities futures contracts with respect to aluminum, copper, nickel and zinc.
abrdn head of ETFs Steve Dunn comments: “The world is at the early stages of a huge energy transition away from fossil fuels into more sustainable sources. Almost every renewable energy system uses large amounts of industrial metals, including electric vehicles, wind turbines, solar panels, grid level batteries and carbon capture systems. That huge, long term structural demand will drive significant new demand for industrial metals, a trend that this ETF opens investors up to.”
It is the first product to be launched in the US under the new abrdn brand and forms part of the region’s growth plans. Those growth plans are centered on growing in the client solutions, passive alternatives, private markets and specialty equity spaces; while continuing to distribute a focussed range of products manufactured outside the region, and generating high quality investment research on Americas markets for products managed elsewhere in the company’s network.
The new product will join the trend of ‘K-1 Free’ commodities ETFs, which do not issue K-1 tax forms that have historically disincentivized clients from investing in the space. abrdn was amongst the pioneers of this trend, with abrdn Bloomberg All Commodity Strategy K-1 Free ETF (BCI) The launch also comes after a period of significant growth for abrdn’s ETF franchise which has gone from managing around $3bn on behalf of clients three years ago to $6.9bn as of September 2021. Three of the five previous metal ETFs in the range have crossed the $1bn asset under management milestone.
Commenting on the region’s growth strategy, CEO for Americas Chris Demetriou, commented: “I’m pleased that we’re launching this new product at a time when demand for industrial metals is only set to grow and investors are looking for non-correlated investments to act as a hedge against inflation and other market risks. Our strategy in the region revolves in part around competing in those areas where our experience and expertise gives us an advantage. This extension to our commodities franchise reflects that strategy. Our ETF AUM has more than doubled in the last three years to reach nearly $7bn today.”
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Diversification does not eliminate the risk of experiencing investment losses.
An investor should consider the investment objectives, risks, charges and expenses of the ETFs carefully before investing. To obtain a prospectus containing this and other important information, visit www. abrdn.com/usa/etf. Please read the prospectus carefully before investing.
This information does not constitute financial product advice. Commodities and futures generally are volatile and are not suitable for all investors.
There are risks associated with investing including possible loss of principal.
This product is new and has limited operating history.
ALPS Distributors, Inc. is not affiliated with abrdn.
ALPS Distributors, Inc. is the distributor for abrdn ETFs.
“Bloomberg®” and “Bloomberg Industrial Metals Subindex Total ReturnSM” are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the indices (collectively, “Bloomberg”)and have been licensed for use for certain purposes by Aberdeen Standard Investments ETFs Advisors LLC. Bloomberg is not affiliated with Aberdeen Standard Investments ETFs Advisors LLC, and Bloomberg does not approve, endorse, review, or recommend abrdn Bloomberg Industrial Metals K-1 Free ETF (BCIM). Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to Bloomberg Industrial Metals Subindex Total ReturnSM
“Bloomberg®” and “Bloomberg Commodity IndexSM” are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the indices (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Aberdeen Standard Investment ETFs Advisors LLC.
Bloomberg is not affiliated with Aberdeen Standard Investment ETFs Advisors LLC, and Bloomberg does not approve, endorse, review, or recommend abrdn Bloomberg All Commodity Strategy K-1 Free ETF. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to Bloomberg Commodity IndexSM.
Notes to editors
At abrdn, we empower our clients to plan, save and invest for their futures.
We structure our business into three areas – and together they reflect our focus on enabling our clients to be better investors:
Investments: We work with clients to create solutions across markets, asset classes and investment strategies – combining our global network of investment professionals with research, data and technology.
Adviser: We offer market-leading platform technology and tools that enable UK wealth managers and financial advisers to look after the diverse needs of their clients.
Personal: We help people throughout the UK plan for their financial futures – through our financial planning business and our digital investing services.
Through the expertise, insight and innovation of our team, we aim to help clients create more ways for money to make an impact. We set our sights on giving them more confidence to achieve their goals, and more clarity about what they need next. And we focus on delivering outcomes that are more than just financial – by investing sustainably to build a better world.
We’re a global business. We manage and administer £532 billion of assets for our clients, and we have over 1 million shareholders. (Figures as at 30 June 2021)
In July 2021 we changed our plc name from Standard Life Aberdeen to abrdn, and all of the client-facing brands we use globally will be switching to our new abrdn brand identity. Over the coming months this will include Aberdeen Standard Investments, Aberdeen Standard Capital, and the Standard Life Wrap and Elevate platforms. In the UK, our digital direct-to-consumer services and our financial planning business switched to the abrdn brand in August 2021.
In the United States, abrdn is the marketing name for the following affiliated, registered investment advisers: Aberdeen Standard Investments Inc., Aberdeen Asset Managers Ltd., abrdn Australia Ltd., Aberdeen Standard Investments (Asia) Ltd., Aberdeen Capital Management, LLC, Aberdeen Standard Investments ETFs Advisors LLC and Aberdeen Standard Alternative Funds Limited.