Q: If you're looing for exposure to metals & the potential electrication boom wouldnt a more diversified way be to own XBM? Especially given that their can be so much more company specific risks in metal business's. Similar to XGD on the gold side.
5i Research Answer:
Commodities would see some benefit from electrification and serve as picks and shovels for the industry. We would be okay with this move to consider exposure to electrification. We would consider this to be one part of the ecosystem. Certainly an ETF with 20+ holdings (many have more) would be a safer way to play the theme vs only owning one or two individual stocks. Similarily with gold: if one only wants general sector exposure then an ETF is the safest and easiest way to get it.