Harbor Capital Advisors today launched a new ETF focused on the energy transition.
The Harbor Energy Transition Strategy ETF (RENW), which began trading on the NYSE on July 14 and has an expense ratio of 80 basis points, offers investors broad exposure to the energy transition through commodity futures. RENW seeks to provide investment results that correspond to the performance of the Quantix Energy Transition Index, which was developed by Quantix Commodities, also the fund’s sub-advisor.
“We believe commodities are still an underrepresented part of advisors’ asset allocation, whether for inflation hedging purposes or to gain broad exposure to the accelerating energy transition. and will become an increasingly important consideration for advisors,” Quantix said in a statement to VettaFi. .
The index tracked by RENW includes raw materials used in the net zero end state (such as industrial metals and precious metals), raw materials that will be used as transition fuels (such as natural gas and oilseeds), as well as the mechanism of carbon pricing during the transition (like emissions), Quantix said.
Since the theme is a global move, the index includes commodities from the US, Europe and the UK
“We believe this important medium-term macro trend has the potential to impact portfolio-wide asset allocation decisions and is an important topic for advisors to understand,” Quantix said.
The fund invests in commodity futures rather than stocks due to uncertainty about the end state of the transition.
“New technologies and new companies will emerge along the way, which poses a potential risk for equity investors in space companies,” Quantix said. “However, because there is only one periodic table, commodity futures provide exposure to the building blocks of the energy transition. The index incorporates diversification considerations using experience and knowledge. expertise of the Quantix team in index design.
This is the second fund this year that Harbor has partnered with sub-advisor Quantix to launch. The All-Weather Inflation ETF (HGER)which is intended as a solution for advisors looking to hedge against inflation, launched in February.
Harbor Capital has a long history of identifying and partnering with investment management specialists. Harbor said it identified Quantix as an outstanding commodity trading and investment management specialist through a rigorous evaluation process.
“We are delighted to partner again with Don Casturo and his team. Their background and extensive experience in investing, trading and developing innovative commodity strategies at Quantix and previously at Goldman Sachs make them the perfect partner to manage both [HGER] and our latest offer, [RENW]said a Harbor spokesperson.
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