Nickel is a versatile and important metal that has a wide range of industrial and technological applications. It is used in the production of stainless steel, which is used in a variety of industries, including construction, automotive, and aerospace. With the global population growth and urbanization, the demand for stainless steel is likely to increase in the coming years, which could lead to a rise in demand for nickel. Moreover, the increasing adoption of electric vehicles (EVs) is expected to be a major driver of nickel demand. Nickel is a key component of the cathode in lithium-ion batteries used in EVs. As the demand for EVs grows, the demand for nickel is likely to increase as well. Another factor that could support nickel prices in the coming years is the supply side. The majority of the world’s nickel supply comes from just a handful of countries, such as Indonesia and the Philippines, which have recently implemented restrictions on nickel exports. Additionally, mining companies have been reluctant to invest in new nickel projects due to the metal’s historically low prices, which could lead to a supply shortfall in the future. What are the best nickel ETFs?
1. iPath Series B Bloomberg Nickel Subindex Total Return ETN (JJN)
First in the list of the best nickel ETFs: The iPath Series B Bloomberg Nickel Subindex Total Return ETN (JJN). It is an exchange-traded note that aims to provide exposure to the performance of the Bloomberg Nickel Subindex Total Return. This index tracks the performance of nickel futures contracts traded on the London Metal Exchange (LME).
Over the past few years, JJN has experienced a mix of highs and lows. In 2018, JJN started the year strong, but prices fell sharply in the second half of the year due to concerns over a global trade war and a slowdown in China’s economy. In 2019, JJN rebounded, gaining around 32% for the year, driven by rising demand for nickel from the EV industry and supply concerns. However, in 2020, JJN experienced significant price volatility due to the COVID-19 pandemic and its impact on global demand for commodities.
In 2021, JJN has continued to perform well, with prices rising due to supply concerns and rising demand from the EV industry. As of the end of March 2023, JJN has gained approximately 14% year-to-date.
2. Aberdeen Standard Physical Nickel Shares
The Aberdeen Standard Physical Nickel Shares, is an investment product that offers exposure to physical nickel bullion. This product is designed to track the performance of the London Metal Exchange (LME) Nickel Price, less expenses and liabilities.
Over the past few years, PHNP has experienced mixed performance. In 2018, the nickel price started the year strongly, but prices fell in the second half of the year due to concerns over a global trade war and a slowdown in China’s economy. In 2019, PHNP rebounded, gaining around 32% for the year, driven by rising demand for nickel from the electric vehicle industry and supply concerns. However, in 2020, PHNP experienced significant price volatility due to the COVID-19 pandemic and its impact on global demand for commodities.
In 2021, PHNP has continued to perform well, with prices rising due to supply concerns and rising demand from the EV industry. As of the end of March 2023, PHNP has gained approximately 12% year-to-date. One of the best nickel ETFs.
3. Global X Nickel ETF (NYSEARCA: NICK)
The Global X Nickel ETF (NICK) is an exchange-traded fund (ETF) that aims to track the performance of companies involved in the exploration, mining, production, and supply of nickel. The ETF invests in companies across the globe, with a focus on companies involved in the production of nickel and nickel-related products.
The past performance of NICK has been mixed. In 2018, NICK experienced a decline due to concerns over a global trade war and a slowdown in China’s economy. In 2019, NICK rebounded, gaining around 23% for the year, driven by rising demand for nickel from the electric vehicle industry and supply concerns. However, in 2020, NICK experienced significant price volatility due to the COVID-19 pandemic and its impact on global demand for commodities.
In 2021, NICK has continued to perform well, with prices rising due to supply concerns and rising demand from the EV industry. As of the end of March 2023, NICK has gained approximately 18% year-to-date.
4. Invesco DB Base Metals Fund (NYSEARCA: DBB)
The Invesco DB Base Metals Fund (DBB) is an exchange-traded fund (ETF) that seeks to track the performance of the DBIQ Optimum Yield Industrial Metals Index Excess Return. This index tracks the price of three industrial metals: aluminum, zinc, and copper.
DBB invests in futures contracts on these metals, rather than holding physical metals. The fund aims to provide investors with exposure to the industrial metals industry, which is expected to benefit from the growth of the global economy and increasing demand for industrial metals.
The past performance of DBB has been mixed. In 2018, DBB experienced a decline due to concerns over a global trade war and a slowdown in China’s economy. In 2019, DBB rebounded, gaining around 13% for the year, driven by supply concerns and rising demand for industrial metals. However, in 2020, DBB experienced significant price volatility due to the COVID-19 pandemic and its impact on global demand for commodities.
In 2021, DBB has continued to perform well, with prices rising due to supply concerns and increasing demand from the global economy. As of the end of March 2023, DBB has gained approximately 25% year-to-date. One of the best nickel ETFs!
5. iPath Pure Beta Nickel ETN (NYSEARCA: NINI)
The iPath Pure Beta Nickel ETN (NINI) is an exchange-traded note (ETN) that provides investors with exposure to nickel prices through the use of futures contracts. The ETN is designed to track the performance of the Barclays Nickel Pure Beta TR Index, which uses a rules-based methodology to select and roll over nickel futures contracts.
NINI aims to provide investors with a pure-play exposure to nickel prices, which can be influenced by a variety of factors including global supply and demand dynamics, geopolitical risks, and economic growth. Nickel is a key component in the production of stainless steel, and also plays a critical role in the production of batteries for electric vehicles.
The past performance of NINI has been mixed. In 2018, NINI experienced a decline due to concerns over a global trade war and a slowdown in China’s economy. In 2019, NINI rebounded, gaining around 17% for the year, driven by supply concerns and rising demand for nickel from the electric vehicle industry. However, in 2020, NINI experienced significant price volatility due to the COVID-19 pandemic and its impact on global demand for commodities.
In 2021, NINI has continued to perform well, with prices rising due to supply concerns and increasing demand from the EV industry. As of the end of March 2023, NINI has gained approximately 25% year-to-date. One of the best nickel ETFs too!
