World Metal & Mining ETFs - 2024 Year in Review

Core Insights - The total assets for the world's 228 Metal & Mining ETFs reached approximately USD $330.7 billion at the end of 2024, marking a 13.1% increase from USD $292.4 billion at the end of 2023, primarily driven by gains in Gold Metal ETFs which constitute over 70% of the total assets [1][2]. ETF Performance - In 2024, the issuance of 5 new Metal & Mining ETFs occurred, while 2 ETFs were retired and delisted. The VanEck Uranium and Nuclear ETF, Franklin Responsibly Sourced Gold ETF, and the 6 India-listed Silver ETFs saw the largest percentage gains in shares outstanding, indicating significant new shareholder interest [2][5]. - Gold price gains were the main factor behind the top-performing ETFs in 2024, with the performance leaders being driven by this trend [2]. - Conversely, the continued selloff in battery metals negatively impacted Energy Transition ETFs, with two of the three worst performers being lithium producer ETFs [3]. Currency Impact on Gold ETFs - Currency depreciation significantly influenced the performance of unhedged Gold ETFs in 2024, with Turkish Lira, Canadian Dollar, and Japanese Yen denominated ETFs outperforming SPDR Gold Shares due to their respective currencies depreciating against the USD [4]. New ETF Launches - Five new Metal & Mining ETFs were launched in 2024, with four of them initiated by Canadian asset management firms specializing in natural resources [5][6]. - China AMC introduced a new Chinese Yuan listed gold company investment product, the China AMC Gold Industry Equity ETF, which invests in various international gold producers. Additionally, several other Chinese asset management companies are seeking permission to create new Gold Industry Equity ETFs [6]. Silver ETFs Growth - By the end of 2024, there were 19 Silver ETFs globally, with total assets exceeding USD $25.8 billion. The first Silver ETF was launched in 2006, and after a hiatus, 6 new Silver ETFs were introduced in 2022 and 2023, all listed in India [9][10]. - The six Silver ETFs trading on Indian exchanges experienced significant increases in shares outstanding during the second half of 2024, indicating a rise in investment from Indian silver investors. India surpassed Switzerland in Silver ETF assets, with expectations to exceed the UK in 2025 [10][11]. Market Trends - Metal & Mining ETF assets now hold more than 12 times the assets of Specialist Managed Funds, leading to potential mispricing in the junior market and a reduction in exploration spending traditionally supported by investment dollars now directed into ETFs [12].