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BP Capital Fund Advisors launches renewable energy ETF


TriLine Index Solutions, the index and ETF development arm of Boone Pickens Capital Fund Advisors, has launched a new renewable energy ETF via the change of the NYSE Pickens Oil Response ETF (NYSE: BOON) to the Pickens Morningstar Renewable Energy Response ETF.

RENW will seek to track the Morningstar North America Renewable Energy Index, which is administered and calculated by Morningstar, Inc’s index group to provide exposure to companies that operate across the full renewable energy supply chain, including renewable energy innovators, suppliers, adopters, and end users.

The index is composed of two distinct constituent groups. The first constitutes 75 per cent of the total index weight and consists of companies with meaningful revenue from renewable energy production or participation in businesses that rely on renewable energy, such as green transportation. The second group constitutes 25 per cent of the total index weight and includes companies that are leaders in meeting their primary energy requirements from renewables. Renewable energy revenue and renewable energy usage are determined by data from Sustainalytics, a leading provider of global environmental, social and governance (ESG) research and ratings.

Toby Loftin, Managing Member of BP Capital Fund Advisors and Founder of TriLine Index Solutions, says: “We are pleased to work with Morningstar’s index team in connection with an ETF in the spirit of the Pickens Plan, which we believe gives investors more balanced exposure to renewable energy. The Pickens Morningstar® Renewable Energy Response ETF (RENW) includes not only renewable energy producers and green transportation companies, but also companies that are increasingly meeting their primary energy needs with renewable energy – which we believe is a better representation of the fundamentals of the renewable energy value chain.”

Loftin adds: “Instead of investing in more narrowly-focused renewable energy funds, investors should take a more holistic approach, with the aim of achieving higher risk-adjusted returns across a more diversified base of companies. For more than a decade, Boone has been an advocate of the importance of renewable energy’s role in an energy plan for America. We believe renewable energy demand will grow dramatically in the years ahead, and RENW is a better way to invest in the theme.”

Sanjay Arya, head of Indexes at Morningstar, says: “The shift toward renewable energy growth is here to stay, and the proportion of investors sensitive to environmental concerns continues to increase around the globe. With strong encouragement from governments, renewable energy represents an area of tremendous innovation. The Morningstar North America Renewable Energy Index that underlies this ETF stays true to the broader secular trend toward increased renewable energy adoption, while the index construction provides a more inclusionary view of the theme.”

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