L&G ETF on Xetra: Since Wednesday a new Exchange Traded Fund of Legal & General Investment Management is tradable on Xetra and Börse Frankfurt.
With the L&G Clean Energy UCITS ETF investors invest in companies with a focus on sustainable energy production worldwide.
Not only producers of renewable energies are considered, but also all participants along the value chain such as suppliers and electricity providers in the areas of wind, solar, hydro and geothermal energy.
The individual companies are equally weighted at the time of the index adjustment.
Name : L&G Clean Energy UCITS ETF
Asset class : Equity ETF
ISIN : IE00BK5BCH80
Ongoing charges : 0.49 per cent
Distribution policy : Accumulating
Reference index : Solactive Clean Energy Index
Solactive Clean Energy Index
The Index seeks to provide exposure to publically traded companies that are actively engaged in the global clean energy industry across different segments of the value-chain.
Companies in the initial universe shall broadly consist of those who supply key components, provide clean energy related services, manufacture original equipments and those who produce clean power.
A company is only eligible for inclusion in the Index if it is of a sufficient size (determined by reference to the total market value of its shares that are publically traded) and it is sufficiently “liquid” (a measure of how actively its shares are traded on a daily basis). Moreover, the Index excludes certain companies: (a) that derive substantial revenues from coal mining; (b) involved in the production of controversial weapons; or (c) that, for a continuous period of three years, have been classified as being in breach of at least one of the UN Global Compact principles, which is a set of globally accepted standards on human rights, labour, environment and corruption.
The universe of companies out of which the Index selection is made is refreshed semi-annually in March and September. All constituents of the Index are equally weighted within the Index subject to certain liquidity based weight caps made to ensure that securities with lower liquidity are not overly represented in the Index. On a monthly basis, the weight of each company is assessed and, if any of them exceed 15% of the index, the weights of all companies are adjusted so that they are again equally weighted within the Index.