ETF issuer Global X ETFs has announced the launch of three European UCITS ETFs, listed on London Stock Exchange and Deutsche Börse Xetra.
The Global X Solar UCITS ETF (RAYZ) and the Global X AgTech & Food Innovation UCITS ETF (KROP) join Global X’s Thematic Growth family, now totalling 21 funds in the European market, while the Global X SuperDividend UCITS ETF (SDIV) represents the firm’s first-ever income UCITS ETF in Europe.
The firm writes that interlinked goals around infrastructure, climate and sustainability can change our relationship to the physical environment. Decarbonisation could help limit the effects of climate change, and the transition to renewables like solar energy is well underway and poised to accelerate due to decreasing technology costs, innovation and supportive policy.
Forecasts suggest the global market for solar energy could reach USD200 billion by 2026, quadruple the market size in 2019. Meanwhile, the combination of population growth, a rising middle class in emerging markets, and more frequent extreme climate events underscores the need for technologies that increase agricultural productivity as well as mitigate food insecurity.
“Renewable energy has climbed as a portion of total global energy production over the past decade and its growth will need to accelerate significantly in the coming decades to meet net-zero emissions goals. In addition, the interconnected challenges of climate change, resource scarcity and global population growth require re-imagining how we approach food,” says Morgane Delledonne, Director of Research, Europe. “Global X is leveraging its thematic expertise to offer investors access to two innovative themes: advancements to solar energy technologies and advancements in innovation and the use of technology in the agriculture and food industries.”
RAYZ, tracking the Solactive Solar v2 Index and with a management fee of 0.50 per cent, is designed to provide access to companies involved in solar energy materials, solar energy systems and components, solar power production, solar technology and solar installation, integration, and maintenance. KROP, tracking the Solactive AgTech & Food Innovation v2 Index and with a management fee of 0.50 per cent, seeks to provide investors with efficient and targeted exposure to various AgTech & Food Innovation sub-themes that we expect to shape the future of agriculture and food systems as the world shifts to more sustainable consumption and production patterns, including precision agriculture, agricultural robotics / automation, agricultural biotechnology and protein & dairy alternatives – among others.
The firm writes that in times of economic uncertainty, investors are often searching for other sources of income to supplement their portfolios. This is especially true as markets continue to experience bouts of volatility amid rising inflation, the Omicron Covid-19 variant and hawkish central bank policies.
“High dividend paying stocks have historically demonstrated the potential to deliver both high income as well as the opportunity to grow one’s principal, potentially increasing a portfolios yield” says Morgane Delledonne, Director of Research, Europe.“ The Global X SuperDividend UCITS ETF accesses some of the highest dividend yielding equity securities, resulting in potential yields that may exceed other high dividend ETFs. Global X is thrilled to bring SDIV to European investors as the firm’s first Income UCITS ETF.”
SDIV, tracking the Solactive Global SuperDividend v2 Index and with a management fee of 0.45 per cent, accesses up to 100 of the highest dividend paying equities around the world. SDIV makes distributions on a semi-annual basis and invests in equities from around the globe.