Europe’s first Solar Energy UCITS ETF (LON:TANN) will be launched in June on the HANetf platform and list on the LSE.
TANN is aiming to tap into one of the fastest sources of new energy with forecasts pointing to US$4.2trn of new solar capacity investment through 2050.
Already one of the cheapest sources of clean energy, costs are forecast to continue to decline as technology improves with TANN to rack the EQM Global Solar Energy Index (SOLARNTR).
Constituents here are companies that derive significant revenue from solar energy-related business operations such as the manufacturing of photovoltaic, solar cells, and systems; panels, project or other finance and solar-powered charging and energy storage systems.
Top 10 holdings in the Index include Motech Industries, TSEC, DAQO New Energy, Meyer Burger Technology and United Renewable Energy. The ETF will have a Total Expense Ratio of 0.69%.
Companies are also screened for compliance with UN Global Compact Principles plus operational business involvement in the fields of oil sands, fossil fuel or controversial weapons.
Jane Edmondson, Principal of EQM Indexes said: “Solar energy is both the cheapest new source of electricity in most countries and the fastest-growing source of new energy capacity.
“TANN is the first pure-play Solar Energy ETF in Europe, offering targeted exposure to this important clean energy theme.
“The launch further expands our partnership with HANetf following the benchmark we developed for the Global Online Retail UCITS ETF ‘IBUY’, tracking the shift from ‘bricks to clicks’.”
Hector McNeil, co-Founder and co-CEO at HANetf, said: “The global solar energy investment opportunity is very exciting for investors and enables them to focus on a global megatrend in the switch away from dirty energy to clean energy.
“The Solar Energy UCITS ETF ‘TANN’ provides a more focused opportunity than simply looking at clean energy.”