VanEck Rebrands Energy ETF to reflect underlying low carbon approach
VanEck has rebranded one of its energy ETFs in response to the ways in which investors are driving change in the energy space and seeking out opportunities to invest in stocks of low carbon energy companies.
“As climate change and its potential solutions have become more present in our global discourse, the language used by those within the energy sector, as well as those investing in it, has changed and evolved,” says Ed Lopez, Head of ETF Product at VanEck. “What used to be referred to as ‘alternative energy’ is now more commonly referred to as ‘green,’ ‘clean’ or ‘renewable,’ and numerous large public companies in the energy space have acquiesced to investor demands to set more stringent, low carbon, emission standards.”
To that end, as of 9 July, 2019, the Fund GEX has become the VanEck Vectors Low Carbon Energy ETF and will have a new ticker: SMOG.
“As this Fund was already investing at least 80 per cent of its total assets in stocks of low carbon energy companies, we wanted to make this change to better align the fund’s branding with its mission and the exposure it provides,” adds Lopez.
The Fund’s index, the Ardour Global Index Extra Liquid, will remain unchanged. The index will continue to focus on companies involved in the production of power through environmentally friendly, non-traditional sources such as wind, solar, hydro, geothermal and bio-fuels as well as the related technologies used to support the production of this power and increase efficiencies in its production, transportation and storage.
Lopez says that VanEck has been a signatory of the Principles for Responsible Investment (PRI) since March 2017.
“Our approach to responsible investment incorporates environmental, social, and governance, ie ‘ESG’ responsibilities and we apply this approach, as appropriate, across asset classes, regions and markets,” he says. “We consider ESG factors, where possible, in both our active fixed income and ETF strategies. In our ETF family, we have sought to develop certain funds with sustainability-related themes or approaches that employ sustainable screening criteria and/or indices, and the changes we’re making with regard to SMOG are being done with all of that thinking in mind.”