WisdomTree has expanded its thematic range with the launch of a renewable energy ETF.
The WisdomTree Renewable Energy UCITS ETF (WRNW) is listed on Deutsche Boerse and Euronext Milan with a total expense ratio (TER) of 0.45%. WRNW will list on the London Stock Exchange on 13 June.
The ETF tracks the WisdomTree Renewable Energy index which offers exposure to global companies across the renewable energy value chain.
To be incorporated in the index, companies must be involved in one or more parts of this value chain including:
Enablers: The building blocks of effectively operating a renewable energy grid including battery energy storage systems, network operators, and recycling
Raw materials: Suppliers of key commodities like steel, copper, and aluminum
Manufacturing: Manufacturers of modules such as polysilicon for solar panels, blades and towers for wind turbines and high voltage cables for power transmission networks
Application: Companies generating renewable power and developing new projects to add additional capacity
Emerging technologies: Innovators of new renewable energy technologies like floating wind and solar, solid-state batteries and hydrogen electrolysers
To help create the stock universe, WisdomTree partnered with Wood Mackenzie, an energy transition research and consulting firm.
WisdomTree added the index is designed to evolve with the development of technology and solutions to achieve net-zero emissions by 2050.
WRNW also applies an ESG screen and is labelled Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).
Chris Gannatti, global head of research at 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.
“Since the war in Ukraine, energy security has been a priority for countries as it became clear the world had to reduce their dependence on fossil fuels. This, coupled with regulatory support to meet net-zero targets by 2050 and significant cost reductions in wind and solar power production are creating a perfect storm for renewable and clean energy production.”
Alexis Marinof (pictured), head of Europe at WisdomTree, added: “By leveraging best-in-class industry experts, like Wood Mackenzie, we are able to offer a pure exposure that reflects a given theme today and evolves as the theme does.”
