Strategy Shares has announced the launch of the Strategy Shares Halt Climate Change ETF (NZRO US).
StrategyShares has launched an actively managed global equity ETF targeting companies that are climate-conscious and environmentally friendly.
The fund has been listed on Nasdaq and seeks long-term capital appreciation by investing in climate-conscious and environmentally friendly companies.
The strategy is actively managed and targets companies globally that have adopted environmentally friendly business practices, produce products and services that combat climate change, and, in the view of the fund’s portfolio management team, are well-positioned from a risk/return perspective for potential outperformance.
The fund has been created by David Miller, Chief Investment Officer of Strategy Shares, and Rob Gough, a serial entrepreneur and investor who is perhaps better known for his acting career. Miller acts as lead portfolio manager with Gough assisting.
“As a business owner and investor, I’ve too often seen ‘greenwashing’ in action, and it’s become very clear to me that the companies best positioned to help drive efforts to halt climate change and potentially deliver outperformance to investors are those that are active in both words and deeds. That is the philosophy behind NZRO and I could not be more excited to be working with Strategy Shares to bring this new ETF to market,” said Gough.
The fund’s investment process begins by identifying companies that meet at least one of a set of climate-focused eligibility criteria.
To be eligible for inclusion, a company must have a direct commitment to net-zero or reduced carbon emissions or must earn at least 50% of its revenues from activities in electrification, clean transportation, industrial and building efficiency or other opportunities driving the energy transition, or from activities focused on advancing the progress of reducing carbon emissions through alternative energy innovation, technological advancements, climate-conscious value chains and similar initiatives.
Companies that meet any of these criteria are then reviewed by the portfolio management team using a rigorous fundamental research approach focused on both creditworthiness as well as strength of commitment to climate initiatives, with the final portfolio made up of those companies the team believes have the highest risk/return potential.
Notable positions currently include Tesla (2.6%), Apple (2.5%) Microsoft (2.5%), Meta Platforms (2.5%), and Alphabet (2.2%).
The fund will not invest in any company whose principal business function is related to the extraction, development or transportation of oil, gas or other fossil fuels.
“The push for net-zero will be a defining economic event for the foreseeable future. Companies that are positioning themselves to play a leadership role in carbon reduction aren’t just going to have an impact on our planet, they will be well-positioned in the eyes of climate-conscious investors,” added David Miller, Portfolio Manager of NZRO.
“We are committed to offering a differentiated product that can not only outperform the market over the long-term but can make a real difference in combatting climate change. Investors coming together with a common goal can have a real impact on fixing the climate crisis, and at Strategy Shares we hope to be part of the solution.”
The fund has a total annual operating expense ratio of 0.95%.