WisdomTree Launches Recycling Decarbonization ETF

April 29, 2022

[Editor’s note: This article originally appeared on ETF Stream]

 

LondonWisdomTree has launched a recycled decarbonisation ETF investing in companies that generate energy from waste products.

The WisdomTree Recycling Decarbonisation UCITS ETF (WRCY) is listed on the London Stock Exchange, Deutsche Boerse and Borsa Italiana with a total expense ratio of 0.45%.

WRCY tracks the Tortoise Recycling Decarbonisation UCITS index made up of 44 companies that derive revenue or own assets from waste-to-energy recycling businesses.

These will typically take rubbish waste, animal manure, agriculture products and animal fats and produce renewable natural gas, ethanol, biomass and renewable diesel.

Stocks will be selected from the TortoiseEcofin proprietary database of 462 global energy companies with an aggregate market cap of $8trn.

Individual securities will be capped at 7% of the index and must have a market cap of at least $200m for two consecutive quarters.

Companies that do not meet the Global Screen Standards or are involved in controversial weapons, tobacco or thermal coal activities will be excluded from the index. The ETF will be labelled Article 9 under the Sustainable Finance Disclosure Regulation. 

Alexis Marinof (pictured), head of Europe at WisdomTree, said: “WRCY is the world’s first ETF focused solely on recycling and decarbonisation, representing a big step forward for the industry as thematic ETFs continue to attract the interest of European investors looking for long-term growth opportunities."

Christopher Gannatti, global head of research at WisdomTree, added: “Reducing the speed and effects of climate change is one of the greatest challenges facing humanity today.

"Moving to renewable and sustainable sources of energy is fundamental to our ability to limit greenhouse gas emissions and keep global warming below 2 degrees Celsius above pre-industrial levels."  

Last week, the firm launched two commodity ETFs, The WisdomTree Battery Metals ETC (WATT) and the WisdomTree Energy Transition Metal ETC (WENT).

In March, WisdomTree expanded its crypto range with cardano, polkadot and solana exchange-traded products, as well as four short and leveraged ETPs tracking the travel and leisure, oil and gas and automobile sectors. 

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