BNE Blue Horizon BNE ETF
In December, newcomer Blue Horizon Capital rolled out an ETF that covers the entire alternative energy economy. The Blue Horizon BNE ETF (BNE) targets companies in five segments: electric vehicles and other new energy-consuming applications; energy storage; performance materials; energy distribution; and energy generation, according to the press release.
BNE comes with an expense ratio of 0.87% and lists on the NYSE Arca.
While there are many alternative energy ETF products available, BNE is unique in that it covers the entire ecosystem related to the “new energy” economy, from generation to the manufactured products that reach end users.
The index holds 100 securities from five segments and 25 subsegments, and it equal weights them on a semiannual rebalancing schedule. Govind Arora, president of Blue Horizon, compares the early stages of the new energy economy to the early days of the internet economy, in that investors don’t yet know who the “winners” will be. The equal weighting keeps large companies from overshadowing smaller up-and-comers.
Eligible companies must meet size and liquidity minimum thresholds, and each is scored on revenue, market share, growth and technology leadership relative to peers. The highest-scoring companies are selected for inclusion, with each of the segments limited to no more than 30 holdings.
Source: ETF.com. Data and information as of 12/31/2020.
The above sidebar covers launches for the month of December 2020.