Strategic Metals ETFs: The Hidden Engines of the Green Energy Transition

The global shift toward clean energy is accelerating demand for critical metals like lithium, cobalt, and rare earth elements-materials that power electric vehicles (EVs), wind turbines, and solar panels. As supply struggles to keep pace with this surge in demand, strategic metals ETFs are emerging as high-conviction investment vehicles for those seeking to capitalize on the energy transition. Among the most compelling options are the VanEck Green Metals ETF (GMET), ProShares S&P Global Core Battery Metals ETF (ION), and Global X Disruptive Materials ETF (DMAT). These funds not only align with the decarbonization agenda but also offer exposure to undervalued sectors poised for explosive growth.

VanEck Green Metals ETF (GMET): A Global Gateway to Green Metals

GMET provides broad exposure to companies involved in the production, refining, and recycling of green metals, including lithium, cobalt, copper, and rare earth elements according to the fund's overview. These metals are foundational to the energy transition, with applications spanning EVs, renewable energy infrastructure, and grid storage. According to industry analysis, demand for these materials is outpacing supply, creating a structural imbalance that could persist for years.

What sets GMET apart is its global diversification, including access to Chinese A-shares via the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs. This access is critical, as China dominates the supply chain for rare earth elements and battery materials. GMET's top holdings-such as Glencore, Freeport-McMoRan, and Ganfeng Lithium-underscore its focus on companies at the forefront of green metal production according to fund data. For investors seeking a diversified, globally integrated play on the energy transition, GMET offers a compelling thesis.

ProShares S&P Global Core Battery Metals ETF (ION): Focused on Battery-Centric Growth

ION zeroes in on the core metals driving the battery revolution, including lithium, cobalt, and nickel. As of December 31, 2025, the fund had assets under management (AUM) of $9.3 million and an expense ratio of 58 basis points. Its year-to-date return of 103.7% as of the same date highlights its strong performance in a sector marked by volatility and rapid innovation.

ION's portfolio is concentrated in high-potential miners like Sigma Lithium Corporation, Liontown Resources Limited, and Albemarle Corp, all of which are pivotal to the battery supply chain according to ETF data. This focus on battery metals positions ION to benefit from the exponential growth in EV adoption and energy storage demand. However, its non-diversified structure means it carries higher risk, making it ideal for investors with a strong conviction in the battery metals sector.

Global X Disruptive Materials ETF (DMAT): Innovation at the Forefront

DMAT takes a broader approach, targeting companies producing materials for disruptive technologies such as solar panels, wind turbines, and hydrogen fuel cells. As of early 2026, the fund's top holdings include Albemarle Corporation (5.51%), Valterra Platinum (4.86%), and Boliden AB (4.81%), reflecting its emphasis on both battery and rare earth elements. With 52 holdings, DMAT balances concentration with diversification, offering exposure to a wide array of clean energy materials.

Performance-wise, DMAT delivered an 87.73% YTD return as of December 31, 2025, with AUM of $20.42 million and an expense ratio of 0.59% according to fund data. Its strategy aligns with the long-term trajectory of the energy transition, particularly as governments and corporations ramp up investments in decarbonization. For investors seeking a blend of innovation and sustainability, DMAT represents a high-conviction bet.

The Case for Immediate Investment

The strategic metals sector is uniquely positioned to outperform in the coming years. With global EV sales projected to surpass 100 million units annually by 2030 and renewable energy capacity expanding at an unprecedented rate, the demand for green metals will only intensify. ETFs like GMET, ION, and DMAT offer tailored access to this growth, each with distinct advantages:
- GMET provides broad, globally diversified exposure to green metals.
- ION targets high-growth battery metals with a concentrated, aggressive strategy.
- DMAT balances innovation with diversification, covering both battery and rare earth elements.

While these funds carry risks-such as commodity price volatility and geopolitical supply chain disruptions-their alignment with the energy transition makes them compelling for investors seeking to capture the next wave of industrial innovation.

Conclusion

The green energy transition is not just a trend-it's an economic imperative. Strategic metals ETFs like GMET, ION, and DMAT are the hidden engines powering this shift, offering investors a direct stake in the materials that will define the 21st century. For those with the foresight to act now, these ETFs represent undervalued opportunities with the potential to deliver outsized returns as the world pivots toward a cleaner, more sustainable future.