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Resource Transformation

Bola Onifade | Alex Janiaud

Last updated on 3 November 2025


At a glance:

  • As the global population expands and living standards improve, the demand for energy and natural resources is ever increasing. 
  • Technology plays a key role in this increasing demand. The mass manufacture and use of computers, smartphones, televisions, and other consumer electronics requires vast amounts of energy, as well as lithium and other precious metals.
  • Society is becoming increasingly focused on how we continue to meet this rising demand, and so we're beginning to see more investment from governments and institutions in finding innovative ways to power our lifestyles.

What is 'Resource Transformation' and why is it important?

Our Thematic Investing portfolios are designed to capture the long-term productivity, population and resource trends that are shaping our futures across the globe. The Resource Transformation theme looks at the increasing demand for energy, materials and water – resources which converge to produce the goods and services we consume and to power life as we know it. 

While the Resource Transformation theme focuses on our evolving demand for resources, it should not be confused with our Socially Responsible Investing (SRI) portfolios. Intensifying demand for more resources will not always be met in a way that is consistent with the principles set out in our approach to SRI, and the Resource Transformation portfolios do not factor ESG considerations into the allocation of assets.

For Resource Transformation clients, around 10% to 20% of equity exposure is thematically invested – capturing both the trends outlined in this guide as well as more traditional players in the resources space. The rest of the Resource Transformation portfolio will invest in a globally diversified range of ETFs that are not specific to the theme. 

How are we investing to harness the opportunities in our long-term resource challenges?

When investing in resource and energy technologies, we look to capture the entire value chain in our portfolio. For example, our investments in solar technology are intended to capture every step of the product lifecycle from the initial mining of lithium and other components, through to the manufacture, distribution and maintenance of panels.

The resource investment space is growing rapidly in order to meet demand, but there are many areas that are still quite young and require further development before they meet our investment standards. For example, investment in uranium previously fell into this category, however in April 2025, an ETF became available that fit our size and liquidity requirements and provided the exposure we needed.

Energy

To store and consume our rising energy output more effectively, governments and institutions are starting to invest in more efficient batteries, fuel cells, and smart-grid technologies, among other innovations. 

We seek exposure to these technologies through the iShares Global Clean Energy UCITS ETF. This ETF includes stocks of firms pioneering new methods of energy production and consumption, including the potential application of hydrogen as a source of fuel for the aviation industry. 

Materials

Across the consumer market, demand for digital services, devices and electric cars is on the rise. In the industrial market, technologies like quantum computing and robotics are also improving in leaps and bounds, and all of these developments are highly resource-intensive. In both the developed world and emerging markets, increasing volumes of raw materials are required to sustain the digitalisation of daily life and commerce - such as copper, silver, nickel and lithium.

We look for exposure in this sector by investing in funds such as the VanEck Global Mining ETF – which primarily focus on organisations within the metal and mineral extraction industries.

Water

Access to clean water is of universal importance across geographies and industries, requiring progress in digital water management, advanced filtration, flood prevention, wastewater processing, and desalination. The latter is becoming an ever more crucial tool in the fight to provide clean water to populations living in hot and arid climates, especially in close proximity to the coastline.

We look for exposure to this sector by investing in funds such as the iShares Global Water UCITS ETF – which primarily focus on the largest names in fresh water production, treatment, transportation, and distribution technology.

Is investing in the Resource Transformation theme right for me?

Structural change can take time to fully embed and can require significant capital. Our Thematic Investing portfolios, including Resource Transformation, are centred on trends that are entering or currently within their growth phase. Therefore, investing in Resource Transformation, and our other thematic portfolios, is more appropriate for those with long-term investing goals. Our investment team has carefully selected themes based on more established trends that are only likely to reach full adoption in the next 10 to 20 years.

It can be a challenge to invest in rapidly evolving spaces, which is why a globally diversified approach that accesses these themes through future-focused ETFs can help to balance the risk. The option to invest in the Resource Transformation thematic portfolio is only available to J.P. Morgan Personal Investing investors with a risk level of 5 or above.

Risk warning

As with all investing, your capital is at risk. The value of your portfolio with J.P. Morgan Personal Investing can go down as well as up and you may get back less than you invest. Past performance and forecasts are not a reliable indicator of future performance. Thematic Investing carries specific risks and is not for everyone. A trend isn’t guaranteed to deliver positive investment returns. Our themes, like Resource Transformation, don’t include ESG considerations. For example, Resource Transformation is likely to involve a mix of renewable and non-renewable materials and energy sources. We do not provide investment advice in this update. Always do your own research.