Industry Updates

Rize ETF unveils sustainable impact ETF

LIFE was designed in partnership with Sustainable Market Strategies

Tom Eckett

Rahul Bhushan Rize ETF

Rize ETF has expanded its range with the launch of an impact ETF that targets 100 companies involved in tackling the world’s most pressing climate and environmental issues.

The Rize Environmental Impact 100 UCITS ETF (LIFE) is listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and the SIX Swiss Exchange with an ongoing charges figure (OCF) of 0.55%.

LIFE tracks the Foxberry SMS Environmental Impact 100 USD Net Total Return index which was designed in partnership with Sustainable Market Strategies, a specialist in sustainable investing, ESG intelligence and climate policy.

It aims to align with the six environmental objectives set out in the European Union’s Taxonomy for Sustainable Activities.

They are:

  • Climate change mitigation

  • Climate change adaptation

  • The sustainable use and protection of water and marine resources

  • The transition to a circular economy

  • Pollution prevention and control

  • The protection and restoration of biodiversity and ecosystems

Each of the objectives is deconstructed into a series of sub-sectors such as clean water, electric vehicles, circular economy, renewables and hydrogen.

It is designed to change over time as the European Commission builds out its complete EU Taxonomy and introduces the rest of the Sustainable Finance Disclosure Regulation (SFDR).

LIFE is classified as Article 9 under SFDR.

Rahul Bhushan (pictured), co-founder of Rize ETF, commented: “What we have created here in partnership with SMS is an investment strategy and ETF that is purpose-built for taxonomy-aligned portfolios.

“We believe this is a hugely constructive and positive first step for the asset management industry as we try to phase out greenwashing and vacuous value-signalling.

“LIFE is a way for investors to align themselves to the six environmental objectives set out in the EU Taxonomy with the knowledge that their investment is being used to back the technologies and solutions that will pave the way to a greener future.”

Stuart Forbes, co-founder of Rize ETF, said: “Our planet is under threat like never before. Temperatures are rising, rainfall patterns are shifting and sea ice cover is retreating. Oceans are acidifying, soils are degrading and droughts and floods are now commonplace.

“LIFE is designed to give investors exposure to the top 100 most impactful companies in the environmental universe while also providing them the comfort that their capital is being geared towards maximising environmental sustainability in each of our relevant sub-sectors.”

Félix Boudreault, chief sustainability officer at SMS, added: “With the proliferation of greenwashing that unfortunately pervades our industry, we were together determined to develop a robust investible solution that cuts through the noise.

“We have created an ETF that does not just focus on carbon avoidance or carbon mitigation but one that seeks to identify the companies that are leaders and innovators in their respective environmental sub-sectors as per the EU Taxonomy.”

This is the fifth ETF the firm has launched since entering the European market in 2020. The range currently has $450m assets under management (AUM).

The four ETFs are:

The launch comes just days after Martin Gilbert's AssetCo acquired a 63% stake in Rize ETF for £16.5m.