Bringing you live news and features since 2006 

Engine No. 1 launches Transform Climate ETF

RELATED TOPICS​

Engine No. 1, which describes itself as an investment firm that drives performance by tying companies’ social and environmental actions to economic outcomes, has announced the launch of its first thematic ETF, the Engine No. 1 Transform Climate ETF (Ticker: NETZ) with an anchor investment from investment advisory firm Jordan Park. 

NETZ is an actively managed fund that aims to invest in companies that will drive and benefit from the energy transition. The fund is focused on holding companies that have a strategy to create value on their path to net zero across multiple industries, including transportation, energy, and agriculture.

“While most climate-focused funds avoid so-called ‘brown’ legacy companies, we believe there is no way to decarbonise the planet without these companies transforming, and there is no time to lose,” says Chris James, Founder of Engine No. 1. “Fewer than 200 companies account for more than 80 per cent of corporate industrial greenhouse gas emissions. There is no path to net zero that doesn’t go directly through those companies. Solving climate change requires the largest investment in capital that the world has ever seen, giving investors the opportunity to play a meaningful and profitable role in transforming companies while also greening the planet.”

NETZ is composed of long-term, high-conviction investments backed by deep company, industry, and market research, the firm writes. The fund looks to invest in companies that have a strategy to create value while working toward net zero. The firm leverages its Total Value Framework to understand which companies create the most long-term economic and societal value through the energy transition. The fund takes a data-driven approach that puts a tangible value on a company’s environmental impact and ties that impact to long-term value creation. The fund’s annual expense ratio is 0.75 per cent.

“As active owners, our goal is to drive transformation at the companies that need it most, including some of the world’s most polluting companies,” says Yasmin Dahya Bilger, Head of ETFs at Engine No. 1. “As investors, we can’t just invest in young tech companies that aim to tackle climate change over a longer time horizon, we need to own and engage with the companies whose transformation will drive change now at scale. Doing so strengthens communities, creates green jobs in the United States, and better serves customers by localising industry.”
 

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by