The Rize Global Infrastructure UCITS ETF (NFRA) is a sustainable infrastructure fund, which has launched alongside the Rize USA Environmental Impact UCITS ETF (LUSA).
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They are listed on the London Stock Exchange and the Frankfurt Stock Exchange, with listing on the SIX Swiss Exchange due in the coming weeks.
Both ETFs carry an ongoing charges figure of 0.45%.
They seek to provide investment returns that correspond generally to the Foxberry SMS Global Sustainable Infrastructure USD Net Total Return index, and the Foxberry SMS USA Environmental Impact USD Net Total Return index, respectively, before fees and expenses.
The Rize Global Sustainable Infrastructure UCITS ETF targets companies that are making a substantial contribution to global sustainable infrastructure development.
These include companies involved in maintaining and upgrading the existing infrastructure of more industrialised economies.
Also targeted are companies developing new infrastructure required for the economic advancement of less industrialised economies as part of the transition to a greener, more sustainable economy.
The ETF integrates the Rize Future First ESG policy and programme, which, among other things, excludes all exposure to fossil fuel infrastructure.
It also uses a ‘sustainability contribution adjustment framework’ developed in partnership with Sustainable Market Strategies.
This seeks to evaluate and score each company for its contribution to environmental and social objectives of the EU Taxonomy for Sustainable Activities, and the UN Sustainable Development Goals.
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Rahul Bhushan, co-founder and director of Rize ETF, said: “The Rize Global Infrastructure UCITS ETF (NFRA) enables traditional ETF investors to access global infrastructure in a way that balances economic, environmental and social objectives.
“It enables thematic ETF investors to access a theme with both a low volatility screen and a quality screen to help diversify otherwise growth-heavy portfolios.”
The Rize USA Environmental Impact UCITS ETF targets US companies that are making a substantial contribution to one or more of the six environmental objectives of the EU Taxonomy.
It employs a methodology developed in collaboration with Sustainable Market Strategies, which deconstructs the six environmental objectives of the EU Taxonomy into a series of “high impact” investment sub-sectors.
These sub-sectors include renewables, energy efficiency, hydrogen and alternative fuels, clean water, electric vehicles and the transition to a circular economy.
Collectively, these US companies are developing and applying innovative and impactful solutions to the world’s most pressing climate and environmental challenges.
The ETF seeks to take advantage of the momentum currently driving the green transition in the US, in terms of legislative bills like the Energy Act, Infrastructure Investment and Jobs Act, CHIPS and Science Act, and the Inflation Reduction Act.
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Stuart Forbes, co-founder and director of Rize ETF, said: “The Rize USA Environmental Impact UCITS ETF (LUSA) seamlessly extends our environmental range of Article 9 ETFs.
“For quite some time, we have firmly believed that regionalising thematic ETF exposures is essential, as it empowers investors to express more precise views. This approach also enhances the utility and functionality of such investments within portfolios.”
