First Trust has launched a thematic ETF capturing the smart grid and electric energy infrastructure sectors.
The First Trust Nasdaq Clean Edge Smart Grid Infrastructure UCITS ETF (GRID) is listed on the London Stock Exchange and Deutsche Boerse with a total expense ratio (TER) of 0.70%.
GRID replicates the NASDAQ OMX Clean Edge Smart Grid Infrastructure index of 79 stocks involved in electric grid, electric metres, devices and networks, energy storage and management, or software used by smart grid and electric infrastructure players.
The index has a 53.3% weighting to industrials, 13% to utilities,12.5% to technology, 10.1% to consumer discretionary, 9.2% to energy and 2% to telecommunications.
Over the past five years, it has returned 106.7%.
Commenting on the launch, Rupert Haddon (pictured), managing director of First Trust, said: “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“Growing demand for electricity along with outdated and inefficient infrastructure means the current power grid is unable to keep pace with twenty-first-century technology.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.”
Ron Pernick, managing director at Clean Edge, added: “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.”
GRID becomes First Trust’s second infrastructure-related thematic launch in April after it debuted the First Trust Alerian Disruptive Technology Real Estate UCITS ETF (DTRE) earlier in the month.