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ETF manager Rize ETF, which specialises in exchange traded funds that follow specific investment themes, has launched two new ETFs in the UK, effectively doubling its range of leading thematic ETF products. The new funds are the Rize Sustainable Future of Food ETF (LSE:FOOD) and the Rize Education Tech and Digital Learning ETF (LSE:LERN).

The ETFs have been simultaneously listed on the London Stock Exchange, Deutsche Boerse and Borsa Italiana. They all have TERs (total expense ratios) of 0.45%.

The FOOD ETF provides investors with exposure to companies that innovate across the food value chain, and are involved in the construction of a more sustainable and fair food system for the world. The ETF was developed in conjunction with Tematica Research, the US-based thematic equity research firm.

Like other ETFs, FOOD has to track an index. In this case, it is the Foxberry Tematica Research Sustainable Future of Food Index, which follows the prices of 44 stocks in both developed and emerging markets. Among the top constituents at the time of writing were Beyond Meat (3.94%), Sig Combibloc Group Ag (3.86%) and BillerudKorsnas AB (3.8%). The index currently has a 24.9% weighting in sustainable packaging, with another 21% devoted to “ingredients, flavours and fragrances.”

“We see expanding plant-based protein options, new technologies penetrating farming, aquaculture and supply chains and changes in the packaging used to wrap our food, among many other things,” explained Stuart Forbes, co-founder of Rize ETF.

The growth in digital learning

The other fund, LERN, invests in companies that are helping to redefine how education is accessed, resourced and consumed. This ETF was developed with HolonIQ, the global education market intelligence specialists that forecast spending on education and training. HolonIQ estimates this is a market that is going to grow by $10 trillion over the next decade.

The LERN ETF follows 35 stocks, again in both developed and emerging markets. It has a hefty weighting in 2U Inc at 9.28%, as well as New Oriental Ed & Technology Group Inc (9.15%) and Bright Horizons Family Solutions (8.64%). It has a 52.8% allocation to US stocks and another 35.9% allocation to China.

Rize ETF has carved out a space for itself as a specialist in what are called thematic ETFs. Unlike the first generation of ETFs, which followed established indexes like the FTSE 100 or the S&P 500, thematic ETFs track potential growth stories within global markets. These still require the construction of specialised indexes for the ETFs to follow.

The new launches bring the Rise ETF total of London-listed ETFs to four. The company has already launched its Rize Cybersecurity and Data Privacy ETF (LSE:CYBR) which tracks a theme The Armchair Trader is found of, and which we will revisit in the future. Also on the Rize ETF menu is its Medical Cannabis and Life Sciences ETF (LSE:FLWR).

By using exchange traded funds, Rize ETF allows investors to tap into exciting new growth themes by just trading a single, London-listed security.


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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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