Asset manager VanEck has listed the VanEck Circular Economy UCITS ETF on the London Stock Exchange.
The firm writes that this new ETF provides access to companies that contribute to the development of resource-efficient materials, production and distribution solutions.
“Our planet’s resources are becoming increasingly stretched and the world is struggling with the waste generated by single-use products. The VanEck Circular Economy ETF provides access to companies that effectively contribute to recycling or other forms of resource efficiency,” explains Martijn Rozemuller, CEO at VanEck Europe.
“The circular economy not only benefits the environment, it also offers economic opportunities,” adds Kamil Sudiyarov, Product Manager at VanEck Europe. “For example, recycling paper provides energy savings of up to 40 per cent compared to producing paper from raw pulp.”
The VanEck Circular Economy UCITS ETF follows the MVIS Global Circular Economy ESG ETF, which tracks the performance of companies contributing to the circular economy. These can be companies that offer products and services for water purification and treatment, energy production from waste and biofuels, waste management and metal recycling services, and from products made from recycled materials or from services related to recycling and product reuse.
“An investment in this ETF is an exposure to companies that help promote the circular economy,” Rozemuller says. “By offering this ETF, we are responding to the current high level of interest in issues related to sustainable production and the environmental impact of our consumption.” The ETF aims to exclude companies that have committed serious violations of social norms, companies that generate sales from controversial weapons or that exceed certain thresholds for their sales from various sectors, such as civilian firearms or tobacco.
The listing of the ETF allows investors to buy and sell the new product in the same way as other regulated exchange products. The ETF has a total expense ratio (TER) of currently 0.4 per cent.
Equity market risk: The prices of securities in the fund are subject to the risks inherent in investing in the securities market, including general economic conditions and sudden and unpredictable price drops. An investment in the fund may result in losses.
Industry or sector concentration risk: The assets of the fund may be concentrated in one or more sectors or industries. The fund may be subject to the risk that political, economic or other conditions adversely affecting the relevant sectors or industries may adversely affect the performance of the fund to a greater extent than if the fund’s assets were invested in a wider variety of sectors and industries.
