European companies leading the way with their recycling efforts will benefit from a new VanEck Exchange Traded Fund (ETF).
The New York-based investment manager has added to its thematic range by listing the Circular Economy UCITS ETF (REUS) on the London Stock Exchange, with a total exchange ratio (TER) of 0.40%.
The global asset manager, which prides itself on identifying new trends, says it will promote investment in firms that excel in developing resource-efficient materials, production and distribution solutions.
It will exclude companies that have committed “serious violations” of social norms or sellers of controversial weapons, along with those that “exceed certain thresholds for their sales” of civilian firearms and tobacco.
VanEck Europe CEO Martijn Rozemuller said: “Our planet’s resources are becoming increasingly stretched, and the world is struggling with the waste generated by single-use products.
“This new ETF provides access to companies that effectively contribute to recycling or other forms of resource efficiency.
“An investment in this ETF is an exposure to companies that help promote the circular economy.
“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 move expands VanEck’s range of impact ETFs and follows its MVIS Global Circular Economy ESG ETF, which tracks the performance of 30 companies contributing to the circular economy.
Those firms derive at least half of their revenues from activities related to water purification and treatment, energy production from waste and biofuels, waste management and metal recycling, or products made from recycled or repurposed materials.
VanEck Europe product manager Kamil Sudiyarov said: “The circular economy not only benefits the environment, it also offers economic opportunities.
“For example, recycling paper provides energy savings of up to 40 per cent compared to producing paper from raw pulp.”
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