Best Titanium ETFs to Buy in 2024

Although its presence may not be as obvious as silver and gold, titanium is a metal found everywhere these days. The airplanes soaring overhead, sunscreen protecting your face, and painted walls in your home all rely on titanium.

When used as an alloy with other metals, titanium is often found in aerospace and industrial applications, to name a few. When used in a compound, titanium dioxide is found in a wide range of products that includes cosmetics, food products, and paper products. Revered for its strength and white pigment, titanium is valued by many industries, and demand for the metal is expected to rise.

But finding an individual titanium stock can be challenging. Luckily, there are exchange-traded funds (ETFs) that present an opportunity for titanium exposure. Although these ETFs aren't solely focused on titanium, they do offer broad exposure to metals in a portfolio, among other benefits.

4 Best Titanium ETFs to Buy in 2024

Once investors have decided that they're seeking an ETF with titanium exposure, they're left with an important follow up question: What are some other qualities that they desire? Some investors may seek reduced risk in an ETF with a greater number of assets under management, while others may want exposure to a variety of) materials in addition to titanium. Fortunately, there are plenty of ETFs to consider.

1. First Trust Indxx Global Natural Resources Income ETF

Offering exposure to a broad range of natural resource-related equities, the First Trust Indxx Global Natural Resources Income ETF is a great choice for investors who want to strengthen their portfolios with titanium but also hope to mitigate the risk of a downturn in the titanium market.

The titanium exposure in the ETF is primarily through its position in Rio Tinto -- the ETF's second-largest holding with an allocation of approximately 9.5%. Tracing its history back 150 years, Rio Tinto has emerged as one of the largest (by market capitalization) materials stocks available to investors.

Rio Tinto conducts titanium dioxide mining operations at three assets located in Madagascar, Canada, and South Africa. In 2022, Rio Tinto reported titanium dioxide production of 1.2 million metric tons; for 2023, management forecasts production of 1.1 million metric tons to 1.3 million metric tons.

In addition to mining stocks like Rio Tinto, the First Trust Indxx Global Natural Resources Income ETF has holdings in a diverse array of natural resource equities such as energy stocks, agricultural stocks, and water utility stocks. The ETF provides distributions quarterly and has a moderate expense ratio of 0.7%. At the end of the first quarter of 2023, the distribution represented a yield of more than 8.3%.

2. iShares MSCI Global Metals & Mining Producers ETF

Eschewing the luster that gold and silver stocks afford, the iShares MSCI Global Metals & Mining Producers ETF is focused instead on diversified metals stocks.

Like the First Trust Indxx Global Natural Resources Income ETF, Rio Tinto is a major holding in the iShares MSCI Global Metals & Mining Producers ETF. Rio Tinto has adopted a dual listing companies structure, and the ETF has positions in two of Rio Tinto's securities, resulting in a weighting of about 9.5% for Rio Tinto.

Further titanium exposure in the ETF comes from its positions in a leading titanium stock, ATI. Although it doesn't operate mines where it produces titanium, ATI is a leading producer of titanium alloys for the aerospace and defense industries. Similarly, Arconic is also found in the ETF. Like ATI, it's a leading supplier of titanium alloy products to the aerospace industry.

Providing distributions semi-annually, the iShares MSCI Global Metals & Mining Producers ETF has reasonable expense ratio of 0.39%. With 260 holdings, iShares MSCI Global Metals & Mining Producers ETF should appeal to conservative investors who seek exposure to metals stocks but who are wary of any one company's lackluster performance jeopardizing the ETF's success.

3. SPDR S&P Metals & Mining ETF

The SPDR S&P Metals and Mining ETF may not have as many holdings -- only 34 to be exact -- as the iShares MSCI Global Select Metals & Mining Producers ETF, but what it lacks in quantity, it makes up for in diversity. The ETF focuses on the stocks that comprise the metals and mining segment of the S&P Total Market Index. Consequently, the ETF has exposure to a variety of industries: Aluminum, coal, diversified metals, precious metals, and steel.

Again, ATI and Arconic afford investors titanium exposure in the ETF. ATI is the ETF's sixth-largest holding. Additional titanium exposure comes in the form of Haynes International, a producer of alloys used in several industries, including aerospace and chemical processing. Haynes manufactures titanium alloy tubing for use in aircraft hydraulic and fuel systems, as well as spacecraft and bicycle frames.

Investors who are interested in titanium but who also have a hankering for precious metals stocks should pay close attention to the SPDR S&P Metals and Mining ETF. The top weighted holding, Hecla Mining, is a leader in silver mining, while Royal Gold, the second-largest position, is a leading precious metals royalty and streaming company.

The SPDR S&P Metals and Mining ETF has a modest expense ratio of 0.35%, and it returns distributions to investors on a quarterly basis.

4. VanEck Rare Earth/Strategic Metals ETF

With enthusiasm for the electric vehicle (EV) industry continuing to accelerate, interest in rare earth metals has soared. Similarly, interest in strategic metals is also on the rise, as the United States looks to shore up its supply chain, ensuring it has an adequate supply of these metals -- such as titanium -- that are critical for various industries. For investors who recognize these concerns, the VanEck Rare Earth/Strategic Metals ETF is a compelling choice.

In addition to numerous lithium stocks, the ETF includes rare earth mining specialist MP Materials among its holdings. Distinguishing itself as operating the only integrated rare earth mining and processing site in North America, MP Materials is based in California and provides an avenue for the United States to shore up its supply of rare earth metals.

The ETF's titanium holdings come in the form of Tronox and Iluka Resources. A vertically-integrated titanium dioxide business, Tronox produces the feedstock for its titanium dioxide at six assets located in Australia and South Africa, and it produces titanium dioxide pigment at nine facilities.

Iluka is a leading producer of titanium dioxide, and it plans on expanding into the refining of rare earth metals. The ETF has a position in the shares of Iluka that trade on the Australian Stock Exchange.

The VanEck Rare Earth/Strategic Metals ETF rebalances its holdings quarterly, and it has a 0.53% expense ratio. Distributions are made on an annual basis.

Are titanium ETFs right for you?

Since there are no ETFs that strictly offer exposure to titanium stocks, investors are left with funds which include titanium stocks among their diverse materials holdings. For those seeking the broadest exposure, the First Trust Indxx Global Natural Resources Income ETF is a great option. Investors who prefer more concentration in metals and mining companies, however, may want to dig deeper into the SPDR S&P Metals and Mining ETF and the iShares MSCI Global Select Metals & Mining Producers ETF. Rare earth and strategic metals-minded investors would be wise to take a closer look at the VanEck Rare Earth/Strategic Metals ETF.