Commodities, basic materials, and metals are hot right now. This is thanks to a variety of factors, ranging from the rising interest in advanced battery technology to the growing enthusiasm for gold as a hedge against market volatility.
Investing in commodity equities such as nickel stocks can be tricky, though. That's where investing in a nickel exchange-traded fund (ETF) can be a good fit, since a nickel ETF provides exposure to nickel prices without requiring investors to buy and store actual nickel.
Nickel, however, hasn't received the same investor interest as other metals. As of early November 2025, the price of nickel had dropped by about 2.2% since the start of the year. But that's not to say that the price of nickel can't rebound -- especially since the metal is a key ingredient in many types of manufacturing and leading technology.
Types of nickel ETFs
Before investing in a nickel ETF, investors would be well advised to consider the different options that lie before them. For one, there's the opportunity to gain nickel exposure through a futures-based ETF, which provides exposure through futures trading. Instead of actually owning the physical metal itself, they focus on futures contracts.
Another option for investors is an equity-based ETF that includes nickel-producing mining companies. Because nickel-mining companies frequently produce other metals as well, investors gain broad exposure to base metals and potentially precious metals.
Investing in nickel ETFs
Nickel production companies are highly volatile and sensitive to changes in supply and demand. Investing in individual nickel stocks isn't for the faint of heart. Nevertheless, demand for nickel is strong.
The elemental metal is one of the most prevalent resources on the planet and is used extensively in manufacturing -- as an ingredient in stainless steel, for example. Technology such as semiconductors and electric vehicle batteries is also expanding and gobbling up more nickel.
Investing in a well-diversified ETF made up of nickel and nickel companies might make sense right now. With that in mind, here are four ETFs that provide investors with exposure to nickel:
ETF | Assets Under Management | Annual Fee | Description |
|---|---|---|---|
SPDR S&P Global Natural Resources ETF (NYSEMKT:GNR) | $3.6 billion | 0.40% | An ETF that provides exposure to the largest stocks in agriculture, energy, metals, and mining |
SPDR S&P Metals & Mining ETF (NYSEMKT:XME) | $2.7 billion | 0.35% | A basket of metal production and mining stocks |
iShares MSCI Global Metals & Mining Producers ETF (NYSEMKT:PICK) | $876.6 million | 0.39% | A diversified mix of mining operations, including nickel mines |
VanEck Steel ETF (NYSEMKT:SLX) | $125.6 million | 0.56% | An ETF that tracks the performance of companies involved in the steel sector |
1. SPDR S&P Global Natural Resources ETF
A good place to start a search for a nickel ETF is with the SPDR S&P Global Natural Resources ETF. This fund provides diverse exposure to agriculture stocks as well as energy stocks and metals stocks.
NYSEMKT: GNR
Key Data Points
SPDR S&P Global Natural Resources ETF includes BHP Group (BHP +2.92%), a global leader in the production of base metals such as nickel, as its largest holding, with a 5% weighting. The fund also has other leading nickel producers such as Glencore (GLNC.Y +3.41%) and Vale (VALE +3.54%).
Primarily comprised of materials stocks -- a weighting of about 62% --the SPDR S&P Global Natural Resources ETF has more than 98 holdings, and it rewards investors with distributions on a semiannual basis. And it's not a meager amount, either. As of November 2025, the ETF reported a 2.7% 30-day Securities and Exchange Commission (SEC) yield.
2. SPDR S&P Metals & Mining ETF
If nickel and other metal production stocks are more your speed, then the SPDR S&P Metals & Mining ETF is worth a closer look. The ETF manages $2.9 billion in investor funds and charges just 0.35% in annual fees.
NYSEMKT: XME
Key Data Points
This is also a much more diversified fund featuring 229 stocks as of November 2025. Top holdings included nickel miners such as BHP Group, Glencore, and Nucor.
iShares MSCI Global Metals & Mining Producers ETF manages $855 million in investor funds and charges 0.39% per year in fees. In addition to providing an investment in nickel and other diversified metal operations, the ETF pays a high dividend for investors looking for income.
4. VanEck Steel ETF
The VanEck Steel ETF provides even more exposure than the SPDR S&P Metals & Mining ETF, as it is singularly focused on giving investors exposure to the leading steel stocks. The top holding in the ETF is Rio Tinto (RIO +2.67%), one of the world's largest diversified mining companies, while Vale stands as the ETF's second-largest position.
NYSEMKT: SLX
Key Data Points
Combined, Rio Tinto and Vale represent almost 20% of the ETF's weighting. Steel producers Nucor and Steel Dynamics also figure prominently in the ETF.
The VanEck Steel ETF has approximately $123 million in assets under management, so it's a smaller option than some other nickel ETFs. The VanEck Steel ETF makes annual distributions and has a 30-day SEC yield of 1.9%.
Why invest in nickel ETFs?
Unsurprisingly, investors may seek nickel exposure through an ETF, as there are a variety of benefits:
- Since nickel is used in stainless steel, as well as alloys, nickel ETFs can provide exposure to a range of industries -- energy, transportation, and aerospace, to name a few.
- Nickel ETFs may help investors with portfolio diversification.
- The U.S. Geological Survey lists nickel on its 2025 Draft List of Critical Minerals, so government policies should support its production.
- The nickel market is projected to grow steadily over the next decade. According to Grand View Research, the global nickel-mining market size was estimated at $90.6 billion in 2024 and is projected to rise at a 2% compound annual growth rate (CAGR) until 2033, when it's forecast to be valued at $105.8 billion.
- A nickel ETF helps investors mitigate the risk of investing in an individual mining stock.
Related investing topics
Nickel ETFs provide industry diversification
For investors who want to introduce nickel production and any potential growth from the metal mining industry to their portfolio, a nickel ETF can help provide some diversification. However, this diversification is only at the industry level and provides limited safety from individual company stocks going haywire and upending overall investment performance.
Bear in mind that nickel prices and mining in general can be a volatile space. A nickel ETF should be paired with an assortment of investments from other industries and various investment classes to achieve true portfolio diversification.
Nevertheless, nickel is a promising investment theme that's worth some research. With top technologies heavily relying on this elemental metal, it could provide healthy returns over the next decade.
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