HANetf is set to launch Europe’s first ETF dedicated to solar energy, as the white-label platform seeks to offer investors access to the rapidly growing industry, Investment Week can reveal.
The Solar Energy UCITS ETF (TANN) will list on the London Stock Exchange in June for a total expense ratio of 0.69% and will be passported for sale across Europe.
TANN is expected to fall under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR) and will track the EQM Global Solar Energy index, which is focused on companies that “derive significant revenue from solar energy-related business operations”. This includes the manufacture of solar cells and energy storage systems, generators of solar energy and providers of solar power systems.
Current top ten holdings include Motech Industries, TSEC, DAQO New Energy, Meyer Burger Technology and United Renewable Energy.
According to data from Bloomberg New Energy Finance, solar capacity investment is forecast to hit $4.2trn by 2050 and solar energy is set to be the largest source of global electricity capacity by 2040.
TANN will screen companies for compliance with UN Global Compact Principles along with operational business involvement in oil sands, fossil fuels and controversial weapons.
Jane Edmondson, principal of EQM Indexes, said: “The global solar energy investment opportunity is very exciting for investors and enables them to focus on a global megatrend in the switch away from dirty energy to clean energy.
“TANN is the first pure play Solar Energy ETF in Europe, offering targeted exposure to this important clean energy theme. It has been classed as an article 8 investment under the Sustainable Finance Disclosure Regulation which demonstrates its environmental characteristics.”
Hector McNeil, co-founder and co-CEO of HANetf, added: “The global solar energy investment opportunity is very exciting for investors and enables them to focus on a global megatrend in the switch away from dirty energy to clean energy.
“The Solar Energy UCITS ETF ‘TANN’ provides a more focused opportunity than simply looking at clean energy and is the first pure-play exposure to the global solar energy industry and its growth prospects distinct from the wider clean energy investment universe which takes in more companies and different technologies.
“It not only expands our offering in the thematic space but adds significantly to our expanding range of clean & renewable energy and ESG ETFs.”