Invesco Ltd. expanded its Invesco Commodities Exchange-Traded Fund (ETF) Suite with the launch of Invesco Electric Vehicle Metals Commodity Strategy No K-1 ETF (EVMT). EVMT is an actively managed ETF designed to provide economic exposure to the commodities widely used in the production of electric vehicles. The Invesco EVMT ETF is the first fund to offer access to upstream electric vehicle transition themes by offering exposure to commodities critical to producing electric vehicles.

This allows investors the ability to focus solely on industrial metals, rather than a midstream investment in companies that manufacture batteries and electric vehicles. At launch, EVMT will invest in derivatives and other financially linked instruments to gain exposure to metals critical to electric vehicle production. These metals currently include aluminium, cobalt, copper, iron ore, nickel, and zinc. The ETF is actively managed with the potential to expand both the number and type of metals included in the ETF as electric vehicle production and technology evolves.

The interest in electric vehicles continues to build in the U.S., bolstered by President Biden's executive order which set a goal for electric vehicles to make up half the cars and trucks sold in the U.S. by 2030.1 Major automobile manufacturers such as Ford, GM, Volvo, Honda2 and others have also committed to electric vehicle transition by 2040.3 The acceleration of electric vehicle production and the materials needed to ramp-up this technology will be critical factors in decarbonization and the push to increase renewable energy. Invesco's Commodities ETF line-up has seen over $3.8 billion of inflows in 20224 thus far, due to the increased investor interest in commodities, possibly due to economic issues including rising interest rates, U.S. inflation and geopolitical unrest. Invesco's broad commodity ETF, Invesco Optimum Yield Diversified Commodity Strategy No K-1 ETF (PDBC), is the larger broad commodity ETF globally.

EVMT will seek long-term capital appreciation by utilizing a strategy designed to exceed the performance of its benchmark, the S&P GSCI Electric Vehicle Metals Index. In pursuing this strategy, EVMT will generally align holdings in a weighting consistent with the benchmark, although it may not seek exposure to all the components of the benchmark or in the same proportion. Similar to PDBC, EVMT is structured as a 1940 Act Fund6 that avoids generating a Schedule K-1 for investors and instead issues a Form 1099.

This tax structure is preferential for some investors.