WisdomTree has added the WisdomTree Renewable Energy Ucits ETF to its range of thematic ETFs.
The Article 9 fund will track the WisdomTree Renewable Energy Index, representing the performance of global companies involved in the renewable energy value chain, at a total expense ratio of 0.45%.
WisdomTree has partnered with Wood Mackenzie, an energy transition research and consulting firm, to launch the fund by helping inform stock selection for the index.
To be eligible for inclusion in the index, a security must be involved in at least one activity such as enabling renewable energy grids, supplying key raw materials or generating renewable power.
Electrification and renewables underpin the reduction in CO2 emissions and emerging technologies – including carbon capture and storage and hydrogen at industrial scale – will become critical for decarbonising hard-to-abate sectors as the transition evolves, the firm said.
Chris Gannatti, global head of research, WisdomTree, said: “The transition towards cleaner and more sustainable energy sources is our best chance of tackling climate change. Renewable energy is at the heart of this endeavour and we see several key drivers that could propel the growth in renewable energy usage.”
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