In November Legal & General Investment Management (LGIM) launched its Clean Energy ETF.
Wealth DFM Magazine spoke to James Crossley, Head of UK Retail Sales, and Aanand Venkatramanan, Head ETF Investment Strategies, to tell us a little about the ETF and its launch.
The ETF provides investors with exposure to the innovation and structural opportunities associated with the growing clean energy ecosystem. The strategy is listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and the Swiss Exchange (SIX), and is available to UK and European intermediary and retail investors.
The ETF will be rebalanced twice a year based on the latest active research to maintain diversification and stay responsive to new entrants and market trends across the global clean energy market, including component suppliers, wind and solar original equipment manufacturers, and power producers across solar, wind, biopower, hydro, ocean power, and geothermal technologies.
James Crossley, Head of UK Retail Sales at LGIM, added: “Climate Change has become a key topic for our UK clients who are asking us to invest in products that have the lowest possible carbon-footprint. By bringing our Clean Energy ETF to market, we are able to meet this demand and bolster LGIM’s leading ESG product offering. This will give investors access to those companies at the forefront of developments within the renewable energy sector, which is key to the energy transition needed to meet the Paris Climate Change agreement targets of net-zero carbon emissions by 2050.”
The ETF was launched in addition to LGIM’s existing thematic range of eight specialist funds, which include the $1.86 billion L&G Cyber Security UCITS ETF and $1 billion L&G ROBO Global Robotics and Automation UCITS ETF. The team hopes to build on recent positive performance, with seven out of eight thematic strategies outperforming the MSCI World Index since the beginning of 2020, on average by more than 20% year-to-date.