Rize ETF reports that it has launched Europe’s first SFDR Article 9 global sustainable infrastructure ETF, alongside Europe’s first SFDR Article 9 USA environmental impact ETF.
Listed on the London Stock Exchange (LSE) and the Frankfurt Stock Exchange (Xetra), with listing on the SIX Swiss Exchange due in the coming weeks, are:
Rize Global Infrastructure UCITS ETF (NFRA)
Rize USA Environmental Impact UCITS ETF (LUSA)
Rize ETF writes that both ETFs carry an OCF of 0.45 per cent and seek to provide investment returns that correspond generally to the Foxberry SMS Global Sustainable Infrastructure USD Net Total Return Index and the Foxberry SMS USA Environmental Impact USD Net Total Return Index, respectively, before fees and expenses.
The firm writes that the Rize Global Sustainable Infrastructure UCITS ETF (NFRA) is Europe’s first and only SFDR Article 9 sustainable thematic ETF specifically targeting companies that are making a substantial contribution to global sustainable infrastructure development.
“These are companies involved in maintaining and upgrading the existing infrastructure of more industrialised economies, as well as companies developing new infrastructure required for the economic advancement of less industrialised economies as part of our transition to a greener, more sustainable economy.
“NFRA is differentiated in offering a distinct investment approach that goes beyond traditional thematic investment in “pure play” infrastructure companies (those generating at least 50 per cent of their revenue from infrastructure-related business activities).
“Specifically, NFRA integrates both the Rize Future First ESG policy and programme, which, among other things, excludes all exposure to fossil fuel infrastructure, and embeds a unique and first-of-its-kind Sustainability Contribution Adjustment Framework developed in partnership with sustainability experts Sustainable Market Strategies, which seeks to evaluate and score each company for its contribution to environmental and social objectives of the EU Taxonomy for Sustainable Activities (“EU Taxonomy”) and the UN Sustainable Development Goals (SDGs). The latter analysis takes into account the geographical region in which the company operates.”
Rahul Bhushan, Co-Founder and Director of Rize ETF says: “The Rize Global Infrastructure UCITS ETF (NFRA) enables traditional ETF investors to access global infrastructure in a way that balances economic, environmental and social objectives. It enables thematic ETF investors to access a theme with both a low volatility screen and a quality screen to help diversify otherwise growth-heavy portfolios. Finally, it enables sustainable/impact ETF investors to access an Article 9 solution with a novel and first-of-its-kind sustainability framework for infrastructure which is rooted in the EU Taxonomy and the UN SDGs.
We are confident that the next wave of thematic ETF investing will be smarter and built for resilience, and crucially, solve client needs. This is precisely what NFRA aims to do, whilst disrupting the orthodoxy that thematic investing is synonymous with growth investing. This is the first theme of many for us that seeks to expand the way investors think about thematic exposures.”
Rize ETF writes that the Rize USA Environmental Impact UCITS ETF (LUSA) is Europe’s first and only Article 9 sustainable thematic ETF specifically targeting US companies that are making a substantial contribution to one or more of the six environmental objectives of the EU Taxonomy.
“LUSA employs a proprietary classification methodology developed in collaboration with sustainability experts Sustainable Market Strategies, which deconstructs the six environmental objectives of the EU Taxonomy into a series of “high impact” investment sub-sectors. These sub-sectors include renewables, energy efficiency, hydrogen and alternative fuels, clean water, electric vehicles and the transition to a circular economy.
“Collectively, these are select US companies developing and applying innovative and impactful solutions to the world’s most pressing climatic and environmental challenges.”
Stuart Forbes, Co-Founder and Director of Rize ETF says: “The Rize USA Environmental Impact UCITS ETF (LUSA) seamlessly extends our environmental range of Article 9 ETFs. For quite some time, we have firmly believed that regionalising thematic ETF exposures is essential, as it empowers investors to express more precise views. This approach also enhances the utility and functionality of such investments within portfolios.
“With the remarkable momentum currently driving the green transition in the US, evident through significant legislative bills like the Energy Act, infrastructure Investment and Jobs Act, CHIPS and Science Act and the Inflation Reduction Act, LUSA stands as the ideal choice to seize the multitude of investment opportunities emerging in this sector.”