First Trust launches new green energy ETF on Xetra

First Trust has launches a new green energy ETF on Xetra and Börse Frankfurt.

With the First Trust Nasdaq Clean Edge Green Energy UCITS ETF - Acc, investors invest in companies that are related to the development, production, distribution or installation of renewable energies and thus provide technologies for a low-carbon economy. To be included in the index, companies must generate at least 50 per cent of their turnover from renewable energies.

Companies are considered that, for example, manufacture membranes and filters for the reduction of pollutants, design intelligent energy management and storage systems for batteries and hydrogen drives, or produce solar, hydro or wind energy.

The weighting of a stock is limited to a maximum of eight per cent. In addition, only five shares may reach this threshold.

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