New Listing

LGIM expands thematic ETF range with clean energy launch

Working with Solactive and GlobalData

Tom Eckett

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Legal & General Investment Management (LGIM) has expanded its thematic range with the launch of a global clean energy ETF.

The L&G Clean Energy UCITS ETF (RENW) is listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and SIX Swiss Exchange with a total expense ratio (TER) of 0.49%.

Physically-replicated, RENW tracks the Solactive Clean Energy index which offers exposure to companies that are at the forefront of the United Nations Sustainable Development Goal 7 which aims to increase the amount of clean energy by 2030.

RENW utilises data from GlobalData, a provider of business information and research on the global power industry. The firm covers the entire global clean energy value chain from producers, suppliers and manufacturers through to insights and trends.

Howie Li (pictured), head of ETFs at LGIM, told ETF Stream last year working with experts in the respective themes is an important step in the index construction process and gives the firm an edge over competitors.

Rebalancing semi-annually, RENW tracks global clean energy companies in areas such as component suppliers, wind and solar original equipment manufacturers, and producers across solar, wind, biopower, hydro, ocean power and geothermal technologies.

Li commented: “A global consensus on climate change has taken shape in just a few years, as wildfires have devastated entire regions, millions have taken to the streets to demand action, and COVID-19 has underscored the importance of averting looming threats before it is too late.

“In this context, we believe the market for clean energy is poised for secular long-term growth. We are delighted to have created this product to offer investors exposure to a unique and diverse basket of stocks that are integral to the world’s growing embrace of cleaner energy.”

This launch is the latest addition to LGIM’s thematic ETF range. Last July, ETF Stream revealed the firm had unveiled three ETFs offering exposure to artificial intelligence, healthcare breakthroughs and clean water:

The clean energy ETF market is relatively small in Europe, however, investor interest has been high. BlackRock offers the largest ETF on the market, the $2.8bn iShares Global Clean Energy UCITS ETF (INRG), which has seen $1.5bn inflows over the past year, according to data from ETFLogic.

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