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VanEck brings its Circular Economy ETF to the London Stock Exchange


Asset manager VanEck has listed its new VanEck Circular Economy UCITS ETF on the London Stock Exchange. This ETF (Exchange Traded Fund) provides access to companies that contribute to the development of resource-efficient materials, production and distribution solutions. VanEck has a history of looking beyond the financial markets to identify trends that are likely to create impactful investment opportunities.

ETFs are listed on exchanges and can be traded like stocks. They typically charge much lower fees than actively managed funds. Recently, many ETFs have been launched tracking baskets of shares which reflect a broad investment theme, so-called ‘thematic investing.’ They have proved popular with investors who want exposure to these themes without the time and costs of buying the underlying shares directly.

“Our planet’s resources are becoming increasingly stretched and the world is struggling with the waste generated by single-use products. The VanEck Circular Economy ETF provides access to companies that effectively contribute to recycling or other forms of resource efficiency,” explains Martijn Rozemuller, CEO at VanEck Europe.

The VanEck Circular Economy UCITS ETF follows the MVIS Global Circular Economy ESG ETF, which tracks the performance of companies contributing to the circular economy. These can be companies that offer products and services for water purification and treatment, energy production from waste and biofuels, waste management and metal recycling services, and from products made from recycled materials or from services related to recycling and product reuse.

The ETF joins an increasingly crowded space in Europe, which has a number of thematic listed funds on offer now around green and planet-saving themes.

“The circular economy not only benefits the environment, it also offers economic opportunities,” adds Kamil Sudiyarov, Product Manager at VanEck Europe. “For example, recycling paper provides energy savings of up to 40 per cent compared to producing paper from raw pulp.”

The ETF aims to exclude companies that have committed serious violations of social norms, companies that generate sales from controversial weapons or that exceed certain thresholds for their sales from various sectors, such as civilian firearms or tobacco.

“An investment in this ETF is an exposure to companies that help promote the circular economy,” Rozemuller said. “By offering this ETF, we are responding to the current high level of interest in issues related to sustainable production and the environmental impact of our consumption.”

The listing of the ETF allows investors to buy and sell the new product in the same way as other regulated exchange products. The ETF has a total expense ratio (TER) of currently 0.4%.

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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