Specialist Thematic ETF pioneer RIZE ETF launches sustainable food and edtech ETFs on SIX
European thematic ETF issuer Rize ETF has listed its two latest ETFs on the Swiss stock exchange, SIX. The Rize Sustainable Future of Food UCITS ETF (FOOD) and the Rize Education Tech and Digital Learning UCITS ETF (LERN) were listed on the London Stock Exchange (LSE), the Deutsche Börse in Frankfurt and the Borsa Italiana in Milan, earlier this month.
The ETFs follow the launch of the Rize Cybersecurity and Data Privacy UCITS ETF (CYBR) and the Rize Medical Cannabis and Life Sciences UCITS ETF (FLWR) in February 2020.
The first of its kind in Europe, FOOD has been developed with Tematica Research, the leading thematic equity research firm in the US, following the firm’s rigorous analysis and study into the global sustainable food ecosystem. The premise of the fund lies in the well-documented global challenge of providing healthy, affordable and nutritious food to a growing global population, while at the same time reducing harm to the environment.
The pioneering investment strategy and ETF – Europe’s first sustainable food ETF – provides investors with exposure to companies that are innovating across the food value chain to build a more sustainable, secure and fair food system for the planet
“The security and sustainability of our food system is one of the world’s most pressing challenges. The good news is that the food industry has begun to respond. We see expanding plant-based protein options, new technologies penetrating farming, aquaculture and supply-chains and changes in the packaging used to wrap our food, among many other things. On the consumption side, we are witnessing a groundswell in consumer consciousness around what they’re putting inside their bodies and how that impacts the planet’s natural ecosystems. As the food system revolutionises, we wanted to build an ETF that could capture the tailwinds arising from the wide array of supply side and demand side catalysts in the food sector,” says Stuart Forbes, co-founder of Rize ETF.
“None of us want to see the sort of things that await us if we fail to invest in the companies that are working to make our food system more sustainable – a loss of biodiversity, freshwater depletion, pollution of our rivers and oceans and enduring damage to our soils, to name just a few. For us, while the thematic universe in sustainable food was vast, using our thematic lens, we distilled the universe down into nine different sub-sectors that we believed captured the opportunity in the most compelling and powerful way. We then broke these sub-sectors down further into the companies that we were able to ascertain best embodied the theme”, says Chris Versace, CIO of Tematica Research.
FOOD replicates the Foxberry Tematica Research Sustainable Future of Food Index and consists of 44 stocks across developed and emerging markets. The ETF is priced at 0.45% per annum.
Also the first of its kind in Europe, LERN has been developed in collaboration with HolonIQ who are the leading global education market intelligence firm in the world, and leverages their proprietary classification system of companies that are market leaders in digital and lifelong learning technologies.
The investment strategy and ETF – Europe’s first digital education ETF – provides investors with exposure to companies that are redefining how education is accessed, resourced and consumed around the world to deliver positive results for the individual and society.
“Technology has the potential to tackle major challenges faced by the education sector. From promoting accessibility and inclusion, to empowering institutions and teachers, to supporting excellent student learning and outcomes, digital learning technologies can help elevate the education sector into the 21st century,” says Rahul Bhushan, co-founder of Rize ETF.
According to HolonIQ, expenditure on education and training from governments, parents, individuals and corporates continues to grow to historic levels and is expected to reach USD$10T by 2030. The Education Technology or “EdTech” sector, specifically, is expected to reach USD$404B by 2025, representing a 16.3% Compound Annual Growth Rate (CAGR) between 2019-2025. That is a USD $63B upgrade to the company’s pre-COVID estimates.
“The surge in EdTech spending brought on by COVID-19 is expected to re-calibrate to a longer-term integration of digital technologies, and transition to much higher adoption of online education over the coming years. Part of this transition includes significant ‘infrastructure catch-up’ required for managing learning, data and administration as most schools and colleges are still at the very start of a long digital maturity journey. In addition to EdTech’s primary role supporting the formal education sector, B2C EdTech models are now on the rise as students, parents and workers increasingly seek learning support and up-skilling for supplemental and/or more direct academic and career outcomes,” says Patrick Brothers, co-CEO at HolonIQ.
“In a sense, with the automation of jobs occurring across multiple industries, LERN is the antithesis to the robotics funds, because a huge number of people will need to re-skill as they are replaced by automation in the years to come. We must build an education system that is no longer confined to the classroom, which is inclusive and which transforms all learners into lifelong learners. Gone are the days of an academic degree setting you up for life. Today, re-skilling and up-skilling are vital, and advanced technologies such as gamification, virtual and augmented reality, and personalised and adaptive learning allow education to be tailored to people’s needs as they move through their lifecycles,” says Rahul Bhushan, co-founder of Rize ETF.
LERN replicates the Foxberry HolonIQ Education Tech & Digital Learning Index and consists of 35 stocks across developed and emerging markets. The ETF is priced at 0.45 per cent per annum.
The team at Rize ETF is committed to challenging orthodoxy and providing investors with access to the most ground-breaking megatrends shaping the planet. The company aims to achieve a balance between long-term returns and an investment in sustainable themes. Rize ETF covers the entire life cycle of an ETF, starting with product strategy, index design, ETF structuring through to distribution.