With the rise of Aluminium prices in the recent months investors are now looking forward to having a share in this commodity. Aluminium is a heavily used material in industrial, automobile and household products and unlike many other metals it benefits greatly from its versatile usage. The price increase is mainly down to 3 things- demand, demand and demand. As the tremendous global demand is rapidly on the rise and China and India are building more planes, ships and shopping malls than ever the prices Aluminum prices have skyrocketed in the past decade. Luckily there are quite a few options out there for people who want to get piece of this pie.
Currently there are five Aluminum ETFs on the market worth looking at-
Global X Aluminium ETF (NYSE:ALUM): This Aluminum ETF focuses on companies that are in the metal business and not one of those that hold Aluminium in storage facility. This includes the international companies as well as global players. It tracks the Solactive Global Aluminium Index. It has holdings in 23 companies with largest holdings in Rio Tinto of 15%, Alcoa of 10%, Alumina Ltd. of 7.8% and Norsk Hydro of 7.7%. It has an expense ratio of 0.69% with a market capitalization of $5.18 million. It is the 26th ETF in commodity equities category. Global X has also launched other metal funds including silver, copper and lithium ETFs which have more than $90 million in assets.
iPath Dow Jones-UBS Aluminum Subindex Total Return ETN (JJU): This is technically not Aluminum ETF, but ETN (Exchange Traded Note). It tracks the Dow Jones-UBS Aluminium Subindex Total Return Index which is a single commodity sub index consisting of one futures contract on the Aluminium commodity. It has an expense ratio of 0.75% with a market capitalization of %7.86 million.
ETFS Aluminium ETF (LSE: ALUM): This ETF having the same ticker symbol as Global X Aluminium ETF is listed on the British London Stock Exchange. It tracks the DJ-AIG Aluminium Sub-Index. It acts as an exchange traded commodity (ETC) which can be created and redeemed on demand. This makes it simpler to trade on the stock exchange. It has an expense ratio of 0.49%.
ETFS Leveraged Aluminium ETF (LALU): This is another Aluminium ETF launched by the ETFS in the form of leveraged ETF. The prices changes daily by 200% based on the changes in DJ-UBS Aluminium Sub-Index Total Return. This means that if the index rises or falls by 1% in a day, the Aluminium ETF will rise or fall by 2% It has an expense ratio of 0.98%.
ETFS Short Aluminium ETF (SALU): This ETF is similar to LALU in terms of underlying metal but is traded in the form of short ETF. It tracks the same index as LALU and ALUM. This ETF however is the inverse of the LALU ETF and provides -200% of daily change of prices based on the change in index. This means that if the index falls by 1% the ETF will rise by 1% and vice versa. It also has the same expense ratio like that of LALU of 0.98%.