ARK Invest Europe (formerly Rize ETF) announces the listing of three new Article 9 sustainable ETFs on the SIX Swiss Exchange, including the Rize USA Environmental Impact UCITS ETF (LUSA), a US environmental transition strategy that has raised more than $100 million in just three months since its launch on the Xetra and LSE exchanges.
By ETFWorld.co.uk
Cathie Wood, Founder, CIO, and CEO of ARK Invest
The company, recently acquired by Cathie Wood’s Ark Invest, is also bringing the Rize Global Sustainable Infrastructure UCITS ETF (NFRA) and the Rize Circular Economy Enablers UCITS ETF (CYCL) to the Swiss market today, respectively focusing on global sustainable infrastructure and circular economy companies.
The three new ETFs all have a TER of 0.45%, and bring the current range of Rize ETFs on SIX to 7 ETFs, of which 5 are sustainable strategies classified as Article 9.
Rize USA Environmental Impact UCITS ETF (LUSA)
The Rize USA Environmental Impact UCITS ETF (LUSA) is the first and only European Article 9 thematic ETF focused on those US companies whose activities are significantly contributing to the environmental objectives identified by the EU taxonomy.
LUSA is based on a proprietary ranking methodology, developed together with Sustainable Market Strategies, which deciles the six environmental objectives of the EU taxonomy into a number of ‘high impact’ investment segments. These include renewable energy, energy efficiency, hydrogen and alternative fuels, water resources, electric vehicles and the transition to a circular economy.
The ETF therefore selects US companies that are developing and implementing innovative and impactful solutions to the most pressing global environmental and climate challenges. With the momentum that the green transition is having in the US, thanks to legislation such as the Energy Act, the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, LUSA is an ideal choice to capture the multitude of investment opportunities that are emerging in this sector.
Rize Global Sustainable Infrastructure UCITS ETF (NFRA)
The Rize Global Sustainable Infrastructure UCITS ETF (NFRA) is Europe’s first and only Article 9 thematic ETF dedicated to companies that are making a significant contribution to sustainable infrastructure development worldwide.
Specifically, the strategy focuses on companies that maintain and upgrade existing infrastructure in the most industrialised economies, but also those that develop new infrastructure necessary for the economic advancement of less industrialised economies, in the context of the global transition to a greener and more sustainable economy.
NFRA is distinguished by an investment approach that goes beyond traditional thematic allocations in ‘pure play’ infrastructure (i.e. generating at least 50 per cent of their revenues from infrastructure-related activities). In fact, it integrates the Rize Future First ESG policy – thus excluding certain infrastructures, such as those related to fossil fuels – and the Sustainability Contribution Adjustment Framework, a unique framework developed in collaboration with Sustainable Market Strategies, which assesses and scores each company for its contribution to the UN SDGs and the objectives of the EU taxonomy for sustainable activities.
Rize Circular Economy Enablers UCITS ETF (CYCL)
The Rize Circular Economy Enablers UCITS ETF (CYCL) is the first European Article 9 sustainable thematic ETF dedicated to companies enabling the transition to a more circular economy.
CYCL differs from similar products in that it places particular emphasis on circular economy enablers: companies such as Origin Materials, Verbio Vereinigte, Aurubis, which develop new business models, technologies and systems that enable the transition to a more sustainable, regenerative and resource-efficient economy.
Specifically, CYCL invests in companies that fall under the 4 circular business models of the SMS Circular Economy Enablers classification, which identifies 7 key value chains to overcome the problems of the linear economy, inspired by documents on the circular economy published by the European Commission. Constructed together with Sustainable Market Strategies, the classification identifies those companies that are making a substantial contribution to the ‘Transition to a Circular Economy’ objective of the EU taxonomy, with circular products and services of their own or that enable other companies to improve the circularity of their business models.
Bhushan Rahul Rize ETF “We have always aimed to expand the horizon of thematic ETFs by bringing innovative solutions to the market, and we are proud to be able to also offer Swiss investors these three sustainable strategies, each with unique features,” says Rahul Bhushan, co-founder of Rize ETF and Managing Director of ARK Invest Europe. “LUSA allows investors to take a more accurate view on the environmental transition by regionalising their exposure. NFRA brings together a core allocation, such as infrastructure, with an innovative sustainability framework aligned to the EU taxonomy and the UN SDGs. Finally, CYCL allows exposure to a particular category of sustainable companies, whose business model will be essential in the transition to a circular economy.”
Source: ETFWorld.co.uk
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