To take advantage of an industry's growth potential, investors don't need to invest directly into the companies making the end products. Instead, you can invest in related business that can do well but that may not be as obvious. A new exchange-traded fund (ETF), the Global X Disruptive Materials (NASDAQ:DMAT) does just that.
The newly created ETF says it will invest in companies that make the metals and materials that are involved in disruptive technologies. This includes inputs such as cobalt, coper, lithium, and many others. The fund has 50 holdings and its top three as of Jan. 26 were precious metals company Sibanye Stillwater, platinum and palladium producer Impala Platinum Holdings, and Japanese mining business Sumitomo Metal Mining. The stocks in the ETF trade on various exchanges and investing in just the single fund can simplify that process for investors, while giving them access to some lesser-known investment options.
Rather than investing in a top growth stock like Tesla (NASDAQ:TSLA) that is already at an expensive valuation and worth more than $800 billion, this ETF can potentially offer investors much more upside while still focusing on high-growth sectors. The fund's fairly low expense ratio of 0.59% makes this an attractive option for long-term investors to just buy and hold for the long haul as these industries grow in size.
Whether you're bullish on robotics, 3D printers, or electric vehicles, the Disruptive Materials ETF has the potential to unlock some incredible growth opportunities for you, especially since many of the stocks in the fund are under-the-radar companies that aren't trading at obscene valuations.
