ETF issuer First Trust has announced the launch of the First Trust Nasdaq Clean Edge Smart Grid Infrastructure UCITS ETF, designed to provide diversified exposure for investors seeking access to the physical infrastructure segment of the clean energy revolution.
The fund is listed on the London Stock Exchange and Deutsche Börse Xetra, and seeks investment results that correspond generally to the price and yield (before fees and expenses) of the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index.
The Index employs a modified market-capitalisation weighting methodology and is designed to act as a transparent and liquid benchmark for the smart grid and electric energy infrastructure sector. In order to be included, companies must be listed on an index-eligible global stock exchange and be primarily engaged and involved in electric grid; electric meters, devices, and networks; energy storage and management; and/or enabling software used by the smart grid and electric infrastructure sector (including both pure play companies focused on the smart grid sector and diversified multinationals with smart grid sector exposure).
Rupert Haddon, Managing Director, First Trust says: “We are thrilled to bring this longstanding US strategy to our European clients. With the energy revolution gathering pace, a smarter grid is incredibly relevant to today’s digital energy ecosystem. Growing demand for electricity along with outdated and inefficient infrastructure means the current power grid is unable to keep pace with twenty-first century technology. For our clients, it represents a less volatile way to gain exposure to the clean energy segment while potentially directly benefitting from future government infrastructure investment. We are delighted to once again work with Nasdaq and Clean Edge (a leader in this space and the world’s first research firm entirely dedicated to the clean-tech sector).”
Ron Pernick, Managing Director at Clean Edge says: “While clean energy technologies such as solar, wind, and EVs get the bulk of media and public attention, it’s the grid that is the great enabler of the energy transition. From next-generation transmission lines and bidirectional grids to distributed and utility-scale energy storage, a modernized grid is required to meet the needs of an always-on, digital, resilient clean-energy economy. Introduced in September 2009, the Index is the first benchmark to track the smart grid and electric infrastructure sectors.”
Cameron Lilja, Global Head of Index Product at Nasdaq says: “We are delighted to see the international expansion of the NASDAQ OMX Clean Edge Smart Grid Infrastructure Index with a new tracking product from First Trust in Europe. Clean Edge has demonstrated its expertise in clean energy research for over two decades. We believe this Index will resonate with European investors given its substantial allocation to European companies, reflecting the region’s important contributions to the space.”
The Fund is aimed at wealth managers, discretionary fund managers, advisers, and institutional investors, with a total expense ratio of 0.70 per cent and base currency of USD; the Fund is rebalanced quarterly.