Rize ETF launches circular economy enablers ETF

Europe’s first Article 9 thematic ETF in this space


Rize ETF has today listed a sustainable thematic ETF that looks to invest in companies enabling the transition to a circular economy.

The Rize Circular Economy Enablers Ucits ETF looks to invest in companies that will facilitate an economic transition, such as the carbon negative chemicals company Origin Materials, rather than those that use cicular economy principles in their business models, such as Lego and IKEA.

It assesses and selects these using a framework that was created in partnership with Sustainable Market Strategies and draws on definitions of the circular economy from the European Commission and the EU taxonomy.

Rahul Bhushan (pictured) ,co-founder and director of Rize ETF, said: “Our clients have an investment strategy that is purpose-built for EU taxonomy-aligned portfolios, leveraging literature published by the European Commission and its working groups on the “Transition to a Circular Economy” objective.”

Circular economy thinking redefines production and consumption around principles of designing out waste and pollution, keeping products and materials in use for as long as possible and fostering a regenerative approach to resource management. It entails redesigning products to be more durable, reusable, repairable and recyclable, and therefore kept in circulation for as long as possible.

Stuart Forbes, co-founder and director of Rize ETF, said it was important to recognise “these nuanced degrees of circularity and the diverse contributions different companies are making towards enhancing circularity.”

The ETF, which brings Rize ETF’s total ETF offering to nine, is classified as Article 9 under SFDR and carries an OCF of 0.45%. It is listed on the London Stock Exchange and the Frankfurt Stock Exchange, with plans to list on the SIX Swiss Exchange in the next few weeks.

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