Off-the-Beaten-Path Metals ETFs With Big Potential

Core Insights - Gold and silver have experienced significant price increases, with gold rising 62% and silver 137% over the past year, marking their best performances in decades as investors look for exposure to these metals through ETFs [2][5] - ETFs provide various access points to precious and industrial metals, including physically backed funds and those focused on mining companies, allowing investors to capitalize on the metals market [2][5] Group 1: ETF Strategies - Investors seeking innovative approaches to metals ETFs can consider funds that target companies based on metal applications or those that focus on less common metals like palladium and platinum, which have also seen substantial price increases [3] - The VanEck Green Metals ETF (GMET) tracks an index of companies involved in the production and processing of metals essential for the transition to clean energy, including cobalt, copper, and lithium, with a global focus [3][4] - GMET's portfolio is heavily weighted towards South African firms at nearly 18%, followed by companies from China, Australia, and Canada, although it consists of a relatively small number of 55 companies, leading to potential concentration risks [4] Group 2: Market Performance - The overall metals market has rallied, prompting interest in ETFs like GMET, PALL, and PLTM, which offer targeted exposure to metals associated with clean energy [5] - GMET's largest holding, Freeport-McMoRan Inc. (FCX), is not exclusively focused on green metals, allowing investors to benefit indirectly from the precious metals rally while primarily targeting green energy investments [4]