Europe will soon have its first ETF focused on companies providing goods and services for cleaner living.

The Cleaner Living ESG-S UCITS ETF (DTOX) is set to list on the London Stock Exchange, Borsa Italiana and Deutsche Boerse in early September with a total expense ratio (TER) of 0.59%.

Tracking the Tematica Bita Cleaner Living Sustainability Screened index, DTOX offers equally weighted and physically replicated exposure to equities involved in cleaner food, building and infrastructure, health and beauty, transport and energy.

Companies in the index include Beyond Meat, Blink Charging, NIO, Peloton and Tesla. At present, its top weighting is awarded to Chipotle Mexican Grill.

The number of constituents changes between the index’s semi-annual rebalances, though all members must derive at least 80% of their revenue from their respective sub-theme contributing to cleaner living.

In addition to its clean living focus, DTOX has a sustainability screen that looks at companies’ adherence to human rights, labour practices, anti-corruption, environmental standards and avoidance of controversial weapons.

DTOX is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). 

Omar El Kheshen, CEO of Quikro, which is one of three companies partnering on the launch, said: “Consumers are becoming much more knowledgeable about the products they are purchasing and making conscious choices towards a cleaner, sustainable lifestyle.

“Demand for cleaner products and solutions, be they beauty products, or the food that we eat, is evident in almost every aspect of everyday life – when at the supermarket when purchasing new appliances or vehicles.”

DTOX will be promoted and distributed via white-label ETF issuer HANetf. This is HANetf’s second ETF partnership with Quikro and Tematica Research following the launch of the Digital Infrastructure and Connectivity UCITS ETF (DIGI) last October.

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