The latest launch from HANetf is Europe’s first cleaner living ETF, Cleaner Living ESG-S UCITS ETF (ticker: DTOX), which, the firm says, will present European investors with a unique ETF that captures those companies positioned to benefit most from the accelerating growth in those goods and services that are better for our bodies, inside and out, and better for the environment.
The firm writes that there are several factors driving that shift, including growing physical and mental health awareness amid rising concerns over obesity, diabetes, ‘added’ sugar, genetically modified and other artificial ingredients in food, personal care, and other products, and a rising concern of impacts of one’s environmental footprint.
DTOX will list on London Stock Exchange, Xetra and Borsa Italiana in early September and will be passported for sale across Europe. The Cleaner Living Sustainability Screened UCITS ETF (ticker: DTOX) has been developed by Quikro, an investor in the financial services industry, which sponsors the launch and development of innovative exchange-traded funds (ETFs), and HANetf. Working with Tematica Research LLC, they have developed a new and unique index for the ETF. This will be Quikro’s second ETF on the HANetf platform following the late 2020 launch of Digital Infrastructure and Connectivity UCITS ETF – DIGI, which was also developed with Tematica Research, LLC.
The DTOX ETF tracks the Tematica Bita Cleaner Living Sustainability Screened Index (TBCLNR), which provides access to the shift in consumer sentiment towards cleaner living across five segments: Cleaner Food & Dining; Cleaner Health & Beauty; Cleaner Building & Infrastructure; Cleaner Transportation and Cleaner Energy.
The index leverages Tematica Research’s Thematic Scorecard, enabling a constituent basket that drives at least 80 per cent of their revenue or earnings from the structural change powering cleaner living. Companies in the index include Beyond Meat (BYND), Blink Charging Co (BLNK), Nio (NIO), Peloton Interactive (PTON), Renewable Energy Group (REGI), Trex Company (TREX), and Tesla (TSLA).
The index has cumulatively returned 49.44 per cent and 372.10 per cent over the past one and five years respectively (Source: BITA, as of 08.24.2021).
The firm writes that while other investment strategies may focus on a specific aspect of the cleaner living theme, such as electric vehicles or organic foods, the Cleaner Living ESG-S UCITS ETF captures the accelerating growth across a much wider span of global trends, reducing its vulnerability to changes in public policy in any one area. This is an ETF that, by its very nature, will be able to adapt and thrive as more companies pivot their business to capture this accelerating shift in consumer preferences and spending, the firm says.
The ETF has an additional Sustainability screen of its constituents to provide adherence to international standards concerning environmental protection, human rights, labour practices, anti-corruption, and controversial weapons development and qualifies as an Article 8 under the Sustainable Financial Disclosure Regulation (SFDR). The ETF will have a Total Expense Ratio of 0.59 per cent.
Omar ElKheshen, CEO of Quikro, says: “The craze towards cleaner living is not going away. It has become clear that this sentiment has led to a structural shift in our society, as opposed to a short-term fad, and companies are pivoting to capture the changing consumer spending profile through new products. 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.
“As a result, we’re excited to offer investors access to Europe’s first ETF that tracks these exciting trends towards a cleaner, healthier lifestyle and planet with the launch of the Cleaner Living ESG-S UCITS ETF (ticker: DTOX).”
Hector McNeil, co-Founder and co-CEO at HANetf says: “2021 has been an unprecedented year for HANetf in terms of fund launches. We’re thrilled to be working with Quikro and Tematica team once again after the successful launch of the Digital Infrastructure and Connectivity UCITS ETF (DIGI) in 2020 and adding Cleaner Living ESG-S UCITS ETF to our range of thematic and ESG ETFs.
“HANetf has one of the most extensive ranges of thematic ETFs available in Europe, and DTOX is an excellent addition to that range. It’s important we offer investors the opportunity to consider unique ETFs that may offer access to long-term, sustainable megatrends, and the ‘cleaner living’ theme is clearly a good addition to the investor’s tool kit and another market first for Quikro and HANetf.”
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