While similar funds emphasise ‘Circular Economy Practitioners’, the firm said it would invest in firms addressing challenges across value chains, inspired by circular economy literature from the European Commission.
This means that rather than focusing on firms such as Lego and IKEA, which have changed their own supply chains, Rize will invest in companies such as carbon-negative materials firm Origin Materials, biofuel firm Verbio Vereinigte and metal supplier Aurubis.
The Rize Circular Economy Enablers UCITS ETF listed today (31 May) on the London Stock Exchange and the Frankfurt Stock Exchange, and will be listed on the SIX Swiss Exchange in coming weeks.
Rize claimed the fund was the first Article 9 sustainable thematic ETF specifically targeting publicly listed companies that have been identified as enablers of the transition to a more circular economy.
This is now the ninth ETF from the firm, joining other sustainable thematic ETFs such as the Rize Sustainable Future of Food UCITS ETF.
The ETF’s ongoing charges figure is 0.45% and uses the Foxberry SMS Circular Economy Enablers index as its benchmark.
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Rahul Bhushan, co-founder and director of Rize ETF, said: “A circular economy aims to break the current linear economic cycle by prioritising waste prevention and the continuous use of resources.
“Transitioning to a circular economy, directly addresses the challenges of resource scarcity, environmental degradation and climate change.”
He added that the ETF was “purpose-built” for EU Taxonomy-aligned portfolios, using literature from the European Commission on the ‘Transition to a Circular Economy’ objective.
