HANetf lists electric charging infrastructure ETF
European ETF white label issuer HANetf is listing the Electric Vehicle Charging Infrastructure Equity UCITS ETF (ticker: ELEC) on the London Stock Exchange (LSE), Deutsche Börse Xetra and Borsa Italiana.
The firm writes that with the world waking up to the risks posed by climate change, electric vehicles (EV) sales are soaring. In 2021 alone, global sales of EVs more than doubled. The number of EVs globally is projected to increase from 3 per cent of all cars today to close to 60 per cent by 2040, the firm says.
In order to sustain 600 million EVs on the road by 2040, todays charging infrastructure will need to see a huge expansion. Market research projects that the global electric vehicle charging station market size is to grow six-fold from 2022 to 2027.
Electric Vehicle Charging Infrastructure Equity UCITS ETF provides exposure to listed firms that have their main field of business in the development and construction of electric vehicle charging infrastructure and will benefit from this projected surge in demand. ELEC will track the Solactive EV Charging Infrastructure Index.
While electric vehicle manufacturing companies have seen significant growth in their valuations, the charging infrastructure market has not yet seen similar returns despite the clear connection to the manufacturer numbers, providing a promising investment opportunity, the firm says.
The electric vehicle charging theme will be composed of two sub-industries: Battery Charging Equipment Manufacturing and Electric Vehicle Charging Stations. The former will include companies such as Blink Charging (BLNK), Wallbox (WBX) and Beam Global (BEEM). The latter includes firms such as ChargePoint Holdings (CHPT) and EVgo (EVGO).
The companies held by the ETF will support the world’s efforts to achieve net zero carbon emissions by boosting the very industry and technologies required to retire fossil fuel based vehicles. The holdings include companies creating battery charging equipment such as Blink Charging (BLNK), Wallbox (WBX) and Beam Global (BEEM).
ELEC tracks an index that incorporates ESG screens in its methodology which seeks to exclude companies that have significant involvement in activities relating to controversial/conventional weapons, tobacco, thermal coal and are in breach of UN Global Compact principles. As a result, ELEC is classified as an Article 8 fund under the SFDR regulations.
Hector McNeil co-CEO and co-Founder of HANetf says: “The future of cars is electric. In a few decades, from Shenzhen to San Francisco, it will become the norm to drive a battery powered vehicle. However, underpinning this revolution will be a huge build out of car charging capacity. Just as the growth of traditional cars in the 20th century required the building of gas and petrol stations, the electric car revolution in the 21st century will require abundant charging stations and home units.
“We are thrilled to be providing investors with a new thematic ETF to access this exciting growth area in the form of Electric Vehicle Charging Infrastructure Equity UCITS ETF (ticker: ELEC). At HANetf, we have been at the forefront of providing investors with solutions that tap into the world’s transition to net-zero carbon emissions, be it through renewable energy ETFs, including Europe’s first Solar ETF, or the world’s first physically backed carbon allowance ETC. Our new electric car charging ETF fits perfectly into this wide range of offerings. ELEC further enhances HANetf’s position as the provider with the most extensive range of thematic ETFs in Europe.”
Timo Pfeiffer, Chief Markets Officer at Solactive, comments: “I still don’t have an electric car myself but am sure this will change in the near future. As such, I started looking at the required charging infrastructure already and can see the potential of that sector overall globally. We are delighted to partner once more with HANetf to launch such a cutting-edge product that wraps up the potential to deliver added value to investors for years to come.”