Commodities, basic materials, and metals are hot right now 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.
Nickel, however, hasn't received the same investor interest as other metals. As of January 2025, the price of nickel had plunged to a level it hadn't seen since the start of 2020. But that's not to say that the price of nickel can't rebound -- especially since the metal is a key ingredient in all sorts of manufacturing and leading technology, and nickel could certainly be a good investment over the next decade.
Investing in commodity equities such as nickel stocks can be tricky, though. That’s where investing in a nickel ETF can be a good fit.
Investing in nickel ETFs
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 are also expanding and gobbling up more nickel. Investing in a well-diversified exchange-traded fund (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) | $2.8 billion | 0.40% | An ETF that provide exposure to the largest stocks in agriculture, energy, and metals and mining. |
| SPDR S&P Metals & Mining ETF (NYSEMKT:XME) | $1.6 billion | 0.35% | A basket of metal production and mining stocks. |
| iShares MSCI Global Metals & Mining Producers ETF (NYSEMKT:PICK) | $769 million | 0.39% | A diversified mix of mining operations, including nickel miners. |
| VanEck Steel ETF (NYSEMKT:SLX) | $75.8 million | 0.56% | An ETF that tracks the performances 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 (GNR 0.54%). Providing diverse exposure to agriculture stocks as well as energy stocks and metals stocks, the SPDR S&P Global Natural Resources ETF includes BHP Group (BHP 1.48%), a global leader in the production of base metals such as nickel, as its second-largest holding with a 4.7% weighting. Additionally, the fund has other leading nickel producers such as Glencore (OTC:GLNC.Y), and Vale (VALE 2.25%).
Primarily comprised of materials stocks -- a weighting of about 62% --the SPDR S&P Global Natural Resources ETF has more than 90 holdings, and it rewards investors with distributions on a semiannual basis. And it's not a meager amount. As of January 2025, the ETF reported a 3% 30-day 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 (XME 1.72%) is worth a closer look. The ETF manages $1.6 billion in investor funds and charges just 0.35% in annual fees. The fund contains 34 stocks that make up the S&P Metals and Mining Select Industry Index. The fund is equal-weighted to all of the holdings.
More than 50% of the portfolio is made up of steel stocks. Since nickel is a key ingredient in steel -- especially stainless steel-- the stocks can provide an investment portfolio with exposure to nickel and its use in industrial applications. Another 6% of the portfolio is composed of diversified mining companies. Top stocks in the SPDR S&P Metals & Mining ETF include steelmakers Nucor (NUE 0.96%), Steel Dynamics (STLD 0.78%), and Cleveland-Cliffs (CLF 1.49%).
3. iShares MSCI Global Metals & Mining Producers ETF
The iShares MSCI Global Metals & Mining Producers ETF (PICK 1.51%) has a more specific focus on metal mining companies, which are operations that extract base materials from the earth. Half of the fund is made up of mining stocks, with another one-third composed of steelmaker stocks.
This is also a much more diversified fund and featured 251 stocks as of early 2025. Top holdings include nickel miners such as BHP Group, Glencore, and Vale. iShares MSCI Global Metals & Mining Producers ETF manages $769 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 also pays a high dividend for investors looking for income.
4. VanEck Steel ETF
Even more so than the exposure that the SPDR S&P Metals & Mining ETF provides, the VanEck Steel ETF (SLX 0.9%) is singularly focused on providing investors with exposure to the leading steel stocks. The top holding in the ETF is Rio Tinto (RIO 1.78%), one of the world's largest diversified mining companies, while Vale stands as the ETF's second-largest position. Combined, Rio Tinto and Vale represent a nearly 20% weighting in the ETF. Steel producers Nucor and Steel Dynamics also figure prominently in the ETF.
The VanEck Steel ETF has approximately $76 million in assets under management, so it's a smaller option than some other nickel ETFs. Making distributions on an annual basis, the VanEck Steel ETF has a 30-day SEC yield of 2.7%.
Related investing topics
Diversification
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.
