Global X has expanded its ETF range in Europe with the launch of three strategies offering exposure to solar, food innovation and companies with high dividends, ETF Stream can reveal.
The Global X Solar UCITS ETF (RAYZ), the Global X AgTech & Food Innovation UCITS ETF (KROP) and the Global X SuperDividend UCITS ETF (SDIV) are listed on the London Stock Exchange, Deutsche Boerse and Borsa Italiana with total expense ratios (TERs) of 0.50%, 0.50% and 0.58%, respectively.
RAYZ tracks the Solactive Solar v2 index which is currently comprised of 48 companies set to benefit from the advancement of the global solar technology industry.
This includes equities involved in solar power production, the integration of solar into energy systems as well as the development of solar-powered generators, engines and batteries.
The increasing use of solar energy is vital in the transition to a low-carbon economy. According to Facts & Factors, the global market for solar energy could quadruple to $200bn by 2026.
KROP tracks the Solactive AgTech & Food Innovation v2 index which offers exposure to 29 companies advancing innovation and the use of tech in the agriculture and food industries.
This includes companies involved in the provision of agricultural technologies related to precision agriculture, agricultural robots and automation, controlled environment agriculture and agricultural biotechnology as well as stocks involved in food innovation such as food waste reduction.
The industry is forecasted to triple to $21bn by 2026, according to Markets and Markets, as the theme looks to address global food insecurities and the potentially adverse environmental impact of large-scale agriculture.
Finally, SDIV replicates the Solactive Global SuperDividend v2 index which can invest in as many as 100 of the highest dividend yielding equities globally.
To be eligible for inclusion, companies must have a market cap of at least $500m, average daily turnover of at least $1m over the past three months and a dividend yield of at least 6% and less than 20%.
The index constituents are equally weighted and rebalanced annually in February with reviews taking place in May, August and November.
The US-listed version, the Global X SuperDividend ETF (SDIV), has gathered $943m assets under management (AUM) since launch in August 2011.
Commenting on the launches, Morgane Delledonne (pictured), director of research, Europe, at Global X, said: “Renewable energy has climbed as a portion of total global energy production over the past decade and its growth will need to accelerate significantly in the coming decades to meet net-zero emissions goals.
“In addition, the interconnected challenges of climate change, resource scarcity and global population growth require re-imagining how we approach food.
“High dividend paying stocks have historically demonstrated the potential to deliver both high income as well as the opportunity to grow one’s principal, potentially increasing a portfolios yield.”
The latest launches take Global X’s UCITS ETF range to 23. Earlier this month, the firm unveiled Europe’s first pure-play wind energy ETF, the Global X Wind Energy UCITS ETF (WNDY) as well as a hydrogen ETF, the Global X Hydrogen UCITS ETF (HYGN), ETF Stream revealed.
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