The Top 3 Nickel ETFs
If you're interested in investing in nickel, you may be wondering which of the top 3 nickel ETFs is right for you. Here, we'll take a look at PRN, JJN, and GMET ETFs. These ETFs offer excellent returns and lower fees than some of their peers. They are the top 3 by market cap.
PRN - PowerShares Dynamic Industrials Sector ETF
PRN - PowerShares Dynamic Industries Sector ETF is an actively-managed exchange-traded fund (ETF) that tracks the performance of an index of U.S. industrial companies. Unlike traditional industrial ETFs, PRN uses a quantitative methodology to select stocks based on their fundamental and price momentum. This fund is a bit more expensive than its peers but may be a good choice for investors who believe in an efficient market.
The PowerShares Dynamic Industrials ETF is closely followed by the S&P SmallCap 600 Industrials Index, an index comprised of smaller companies in the industry. It was launched in April 2010 and has a total AUM of nearly $49.5 million and an average daily volume of 32K shares. The ETF's performance has been strong throughout the first half of 2011, with a 1.25% increase in price over the same period last year.
JJN - iPath Bloomberg Nickel Subindex Total Return
The iPath Bloomberg Nickel Subindex Total Return ETN (JJN) launched by Barclays Bank PLC aims to track the price performance of the Bloomberg Nickel Subindex Total Return index. The Bloomberg Subindex tracks future contracts on nickel and focuses on volatility. The ETN is expected to mature on January 23, 2048. Investors will need to accept the counterparty risk associated with its issuer Barclays.
The Bloomberg Commodity Index Total ReturnSM reflects the price performance of one nickel futures contract. The ETN is a riskier option than commodities futures contracts. Investors should consider the risks and rewards of investment in such a highly-speculative security. Its risk is higher than ordinary unsecured debt securities, which offer limited principal protection. Since the ETNs are unsecured debt obligations of issuer Barclays Bank PLC, investors should be aware that they do not have any protection for their principal.
GMET - VanEck Vectors Nickel ETF
GMET is an exchange-traded fund that invests in companies that produce and sell metals. The metals that are included in the GMET index include lithium batteries and clean energy technology. The methodology for selecting these companies does not include ESG screens. VanEck's team selects companies based on their business activities, not the environmental, social, and governance issues that many other funds employ.
There are many nickel ETFs available in the market, including those from US exchanges. It's important to remember that these investments are not fully liquid, and are subject to market makers' interventions.
Check out my favorite monthly dividend paying ETF where I review JEPI.