Industry Updates

Lyxor overhauls fourth ETF to track thematic ESG index

Swap follows a period of strong performance for clean energy ETFs

Theo Andrew

a group of wind turbines

Lyxor has overhauled its new energy ETF to track a thematic index that incorporates ESG metrics.

As of today, the €1.4bn Lyxor New Energy UCITS ETF (NRJ) will switch to tracking the MSCI ACWI IMI New Energy ESG Filtered NET Total Return index, instead of the World Alternative Energy Index CW Net Total Return.

The swap means NRJ will change its name to the Lyxor MSCI New Energy ESG Filtered UCITS ETF under the same ticker.

Having launched in 2007, the index offers exposure to the 40 largest companies involved in the renewable energy sector – as calculated by RobecoSAM – and has returned 19.5% in the 12 months to 23 November.

The ETF’s top three holdings comprise of Schneider Electric (15.6%), Orsted (7.8%) and STMicroelectronics (7%).

It is the fourth thematic ETF that Lyxor has switched the index on in the past month as it continues to create a suite of ETFs to take advantage of thematic ESG megatrends.

In October, the $387m Lyxor Robotics & AI UCITS ETF (ROAI), the $1.5bn Lyxor World Water UCITS ETF (WATC) and the $88m Lyxor MSCI Taiwan UCITS ETF (TWLN) all swapped to thematic indices, with ROAI and WATC joining TWLN on MSCI indices.

Speaking to ETF Stream following the previous switches, Antonio Celeste head of ESG product at Lyxor, said: “It is to provide clients with a consistent suite of products in the thematic space that will use the same philosophy. They can combine a very advanced approach on a thematic selection with an ESG approach.”

Clean energy strategies were among the best performing ETFs last month following COP26 in Glasgow. boosting investors that have piled into the sector. 

The switch follows several index changes by Lyxor in the past month including the €378m Lyxor MSCI EMU ESG UCITS ETF (MMFD), €142m Lyxor S&P Eurozone ESG Dividend Aristocrats UCITS ETF (EDIV) in October.

In the same month, the French asset manager swapped to an ESG index on the €280m Lyxor MSCI China ESG Leaders Extra UCITS ETF (ASIL) and its $942m Lyxor MSCI USA ESG UCITS ETF (USAL).

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