2 ASX-listed companies set to join global green ETFs: MarketVector

Mon 12 Sep 22, 10:55am (AEST)
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Key Points

  • The MarketVector rebalance will affect VanEck's US-listed ETFs
  • Sayona will be a new addition to the Rare Earths/Strategic Metals ETF
  • Boss Energy will be added to the Uranium and Nuclear Energy ETF

MarketVector Indexes announced its third quarter index rebalance last Friday, with notable changes impacting ASX-listed uranium and lithium stocks.

The rebalance affects VanEck- a US-based investment management firm - and its listed ETFs. The implementation date for the rebalance is expected to take place by no later than Friday, 16 September.

Rare Earth/Strategic Metals ETF

The VanEck Rare Earth/Strategic Metals ETF is listed on the NYSE and seeks to provide investors exposure to companies involved in the production, processing and recycling of rare earth and strategic minerals.

It's also often mentioned our Morning Wrap as a barometer for local lithium and green metal stocks.

Quarterly review changes:

In: Sayona Mining (ASX: SYA)

Out: Australian Strategic Metals (ASX: ASM), Sierra Rutile (ASX: SRX)

MVREMX Quarterly-Review 2022-Q3
Source: MarketVector

Given the ETF's net assets of US$886m and new 3.03% capped allocation for Sayona, this implies approximately $40m worth of exposure in Sayona.

This isn't too big of a deal given Sayona's market cap of $2.7bn and 20-day average turnover of approximately 71m shares.

Nevertheless, it's still a positive tailwind for the emerging lithium player, due to hit production status in the first quarter of 2023.

In parallel, Sayona will be added to the ASX 200 prior to the open on Monday, September 19.

Uranium and Nuclear Energy ETF

The VanEck Uranium and Nuclear Energy ETF seeks to provide investors with exposure to companies involved in uranium exploration and mining, the manufacturing of nuclear components and nuclear power generation.

Quarterly review changes:

In: Boss Energy (ASX: BOE)

MVNLR Quarterly-Review 2022-Q3
Source: MarketVector

The ETF has net assets of only US$52.5m, which implies approximately $770,000 worth of exposure in Boss Energy. This is rather immaterial given the company's market cap of just over $1bn.

Still, it reflects an appreciation for Boss Energy as one of the more advanced ASX-listed uranium names, expected to hit production status in the fourth quarter of 2023.

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Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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