Investing in helium is a strategic decision for those looking to diversify their portfolio and take advantage of the valuable resource’s potential as a finite and essential commodity. Helium, a non-renewable gas that can only be extracted from natural gas wells, is the second-lightest element in the universe and has numerous industrial, scientific, and medical applications. One of the primary reasons to invest in helium is its limited supply, which is dwindling rapidly. As the demand for helium grows, it is becoming increasingly scarce, making it a valuable commodity. Moreover, its applications in healthcare, electronics, aerospace, and other industries are only increasing as technology advances. This growing demand is likely to keep the price of helium stable, even during economic downturns. Furthermore, the helium market is less volatile than other commodity markets, which can make it an attractive investment for long-term investors. Its price stability also makes it a reliable option for diversifying one’s investment portfolio. In addition, governments around the world are taking steps to ensure that the helium supply remains available to meet growing demand. For instance, the US government has established the Federal Helium Reserve to ensure a stable supply of helium for critical applications. What are the best helium ETFs?
1. iShares Global Clean Energy ETF (ICLN)
The iShares Global Clean Energy ETF (ICLN) is an exchange-traded fund that seeks to track the investment results of an index composed of global equities in the clean energy sector. This ETF focuses on companies that provide solutions to environmental problems, including renewable energy sources, energy efficiency, and sustainable infrastructure.
ICLN was launched on June 24, 2008, and has an expense ratio of 0.46%. As of September 30, 2021, it held 118 securities, with a net asset value of over $8 billion. The ETF is diversified across various regions, including the United States, China, Denmark, and Spain, among others.
ICLN’s past performance has been volatile, with significant fluctuations in value. For example, in 2020, the ETF gained over 142%, reflecting investor interest in the clean energy sector. However, in the first half of 2021, it declined by over 8%, reflecting concerns about rising interest rates and a shift away from high-growth stocks.
Overall, ICLN has had strong long-term performance, with an average annual return of 18.14% over the past three years, 22.74% over the past five years, and 14.15% over the past ten years (as of September 30, 2021). However, past performance is not a guarantee of future results, and investors should carefully consider the risks associated with this ETF before investing. Definitely an important ETF in the list of best helium ETFs!
2. VanEck Vectors Rare Earth/Strategic Metals ETF (REMX)
The VanEck Vectors Rare Earth/Strategic Metals ETF (REMX) is an exchange-traded fund that seeks to track the performance of the MVIS Global Rare Earth/Strategic Metals Index. This index tracks the overall performance of companies engaged in the exploration, development, and production of rare earth metals and strategic metals, including those used in the production of magnets, electric vehicles, and other advanced technologies.
REMX was launched on October 27, 2010, and has an expense ratio of 0.54%. As of September 30, 2021, it held 20 securities, with a net asset value of approximately $681 million. The ETF is diversified across various regions, with the majority of its holdings in China and Australia.
REMX’s past performance has been volatile, with significant fluctuations in value. In 2020, the ETF gained over 56%, reflecting investor interest in the rare earth metals sector. However, in the first half of 2021, it declined by over 11%, reflecting concerns about supply chain disruptions and trade tensions.
Overall, REMX has had strong long-term performance, with an average annual return of 22.42% over the past three years, 24.35% over the past five years, and 2.85% over the past ten years (as of September 30, 2021). However, past performance is not a guarantee of future results, and investors should carefully consider the risks associated with this ETF before investing. One of the best helium ETFs!
3. First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID)
The First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) is an exchange-traded fund that seeks to track the performance of the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index. This index tracks the overall performance of companies involved in the electric grid and electric infrastructure sector, including those involved in energy storage, smart grid technologies, and electric vehicle charging infrastructure.
GRID was launched on November 17, 2009, and has an expense ratio of 0.7%. As of September 30, 2021, it held 61 securities, with a net asset value of over $2 billion. The ETF is diversified across various regions, with the majority of its holdings in the United States.
GRID’s past performance has been volatile, with significant fluctuations in value. For example, in 2020, the ETF gained over 60%, reflecting investor interest in clean energy and electric infrastructure. However, in the first half of 2021, it declined by over 4%, reflecting concerns about rising interest rates and a shift away from high-growth stocks.
Overall, GRID has had strong long-term performance, with an average annual return of 15.09% over the past three years, 16.84% over the past five years, and 10.77% over the past ten years (as of September 30, 2021). However, past performance is not a guarantee of future results, and investors should carefully consider the risks associated with this ETF before investing. A must have as one of the best helium ETFs.
4. Global X Lithium & Battery Tech ETF (LIT)
The Global X Lithium & Battery Tech ETF (LIT) is an exchange-traded fund that seeks to track the performance of the Solactive Global Lithium Index. This index tracks the overall performance of companies involved in the production and exploration of lithium and the supply chain of lithium-ion batteries, including those involved in battery manufacturing and electric vehicle components.
LIT was launched on July 22, 2010, and has an expense ratio of 0.75%. As of September 30, 2021, it held 56 securities, with a net asset value of over $2.6 billion. The ETF is diversified across various regions, with the majority of its holdings in the United States and China.
LIT’s past performance has been volatile, with significant fluctuations in value. For example, in 2020, the ETF gained over 121%, reflecting investor interest in electric vehicles and battery technology. However, in the first half of 2021, it declined by over 4%, reflecting concerns about rising interest rates and a shift away from high-growth stocks.
Overall, LIT has had strong long-term performance, with an average annual return of 21.95% over the past three years, 23.69% over the past five years, and 20.01% over the past ten years (as of September 30, 2021). However, past performance is not a guarantee of future results, and investors should carefully consider the risks associated with this ETF before investing. One of the best helium ETFs!
5. Global X Uranium ETF (URA)
The Global X Uranium ETF (URA) is an exchange-traded fund that seeks to track the performance of the Solactive Global Uranium & Nuclear Components Total Return Index. This index tracks the overall performance of companies involved in the uranium mining industry, nuclear power generation, and related equipment and technology.
URA was launched on November 4, 2010, and has an expense ratio of 0.69%. As of September 30, 2021, it held 24 securities, with a net asset value of over $370 million. The ETF is diversified across various regions, with the majority of its holdings in Canada and the United States.
URA’s past performance has been volatile, with significant fluctuations in value. For example, in 2020, the ETF gained over 52%, reflecting investor interest in uranium and nuclear power as a potential clean energy source. However, in the first half of 2021, it declined by over 14%, reflecting concerns about rising interest rates and a shift away from high-growth stocks.
Overall, URA has had mixed long-term performance, with an average annual return of 12.37% over the past three years, 7.92% over the past five years, and -4.05% over the past ten years (as of September 30, 2021). However, past performance is not a guarantee of future results, and investors should carefully consider the risks associated with this ETF before investing, including the regulatory and environmental risks associated with the uranium industry. One of the best helium ETFs too.
6. SPDR S&P Global Natural Resources ETF (GNR)
The SPDR S&P Global Natural Resources ETF (GNR) is an exchange-traded fund that seeks to track the performance of the S&P Global Natural Resources Index. This index includes companies involved in the production and distribution of commodities such as energy, metals, and agriculture, as well as forest products, paper and packaging, and chemicals.
GNR was launched on September 27, 2010, and has an expense ratio of 0.40%. As of September 30, 2021, it held 120 securities, with a net asset value of over $2.6 billion. The ETF is diversified across various regions, with the majority of its holdings in the United States, Canada, and the United Kingdom.
GNR’s past performance has been volatile, with significant fluctuations in value. For example, in 2020, the ETF gained over 24%, reflecting investor interest in natural resources as a potential hedge against inflation and a potential source of economic growth. However, in the first half of 2021, it declined by over 2%, reflecting concerns about rising interest rates and a shift away from high-growth stocks.
Overall, GNR has had mixed long-term performance, with an average annual return of 11.50% over the past three years, 5.95% over the past five years, and 1.74% over the past ten years (as of September 30, 2021). However, past performance is not a guarantee of future results, and investors should carefully consider the risks associated with this ETF before investing, including the cyclical and volatile nature of natural resources industries. The last in the list of our best helium ETFs!
