VanEck has expanded its thematic ETF range with the launch of sustainable future of food and space innovators strategies.
The VanEck Sustainable Future of Food UCITS ETF (VEGI) and VanEck Space Innovators UCITS ETF (JEDI) are listed on the London Stock Exchange and Deutsche Boerse with total expense ratios (TER) of 0.45% and 0.55%, respectively.
VEGI tracks the MVIS Global Future of Food ESG index which consists of 35 companies deriving at least 50% of their revenues from products and services related to meat and dairy alternatives, organic foods, food flavourings and innovative agricultural technologies.
The ETF also screens companies on ESG criteria and is classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).
Martijn Rozemuller (pictured), CEO at VanEck Europe, commented: “The production of food, especially meat, harms both the environment and health.
“Without profound changes in agriculture and food production, the world will not be able to stop climate change. With all this in mind, consumers around the world are now demanding alternatives.”
JEDI physically replicates the MVIS Global Space Industry ESG index which offers exposure to 25 companies that make at least 50% of their revenue from space exploration and tourism, rockets and propulsion systems, satellite equipment and services and communications solutions.
The ETF applies an ESG filter that excludes manufacturers of controversial weapons, such as biological and chemical weapons, cluster munitions and anti-personnel mines.
Rozemuller added: “While rockets and satellites used to be developed and launched primarily by governments, a variety of commercial companies are now engaged in building and operating these technologies.
“At the same time, space is starting to come back onto the agenda of governments – but they are increasingly relying on the services of private companies in this new commercial space age.”
The underlying indices of both ETFs are reviewed quarterly, with eligible constituents requiring a market cap of at least $150m, a three-month average daily trading volume of $1m and at least 250,000 shares traded per month over the past 12 months. Each constituent is capped at an 8% weighting.
The arrival of VEGI and JEDI mark VanEck’s first thematic ETF launches of 2022, with the firm focusing its efforts so far this year on a crypto exchange-traded note (ETN) spree covering FTX, algorand, terra, chainlink, smart contracts and ‘crypto leaders’.