Upcoming launch of Solar Energy UCITS ETF on London Stock Exchange
- Europe’s first Solar Energy ETF (ticker: TANN) ‘TANN’ will
deliver pure-play exposure to the rapidly growing global solar industry
- New solar capacity investment is forecasted to hit $4.2
trillion[1]
through to 2050 with solar expected to be the largest source of global
electricity capacity by 2040[2]
- TANN Solar Energy ETF will track the EQM Global Solar
Energy Index which achieved back-tested returns of 211.32% in the past 12
months. Past performance is no guarantee of future performance.
- TANN is ESG screened and is expected to be
scheduled as Article 8 under the Sustainable Finance Disclosure
Regulation (SFDR)
- TANN is distributed on the HANetf platform alongside its
growing range of thematic ETFs and exchange traded cryptocurrencies and
commodities
The launch of Europe’s first Solar
Energy UCITS ETF on the HANetf platform will deliver pure-play exposure to
the rapidly-growing global solar industry as it builds to be the largest source
of global energy capacity. The Solar
Energy UCITS ETF (LSE ticker: TANN) ‘TANN’ will list on London Stock Exchange in June and will be passported for
sale across Europe.
Solar energy is the
fastest-growing source of new energy capacity with forecasts for $4.2 trillion
of new solar capacity investment through 2050[3].
According to the Solar Energy Industries Association, solar energy is now the
cheapest new source of electricity in most major countries, and as costs
continue to decline, solar operations will undercut coal and fossil-fuel based
power generation.
The Solar
Energy ETF will track the EQM Global Solar Energy Index (SOLARNTR) which is
focused on companies that derive significant revenue from solar energy-related
business operations including manufacturing of photovoltaic, solar cells, and
systems; producers of solar power generation, equipment, and components;
providers of solar power system installation, development, and financing;
and/or manufacturing of solar-powered charging and energy storage systems. Top 10
holdings in the Index include Motech Industries, TSEC Corp, DAQO New
Energy Corp, Meyer Burger Technology and United Renewable Energy Co Ltd. The ETF will have a Total Expense
Ratio of 0.69%.
The SOLARNTR index back-tested
performance shows it achieved 211.32% returns in the past 12 months[4].
Past performance is no guarantee of future results. When you trade ETFs your
capital is at risk.
[4] Source: EQM Indexes as of 30.04.2021. SOLARNTR Performance 336% from 29.01.2016 to
08.04.21. Back testing is the process of
evaluating an investment strategy by applying it to historical data to simulate
what the performance of such strategy would have been. Back tested data does
not represent actual performance and should not be interpreted as an indication
of actual or future performance.
Focusing on solar energy offers a
different opportunity set from just targeting clean energy and potentially
stronger returns. Companies are screened for compliance with UN Global Compact
Principles plus operational business involvement in the fields of oil sands,
fossil fuel or controversial weapons.
The Solar Energy ETF - TANN is
expected to be scheduled as Article 8 under the Sustainable Finance Disclosure
Regulation (SFDR).
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 . It has been classed as an article 8 investment under the
Sustainable Finance Disclosure Regulation which demonstrates its environmental
characteristics.”
“TANN
is the first pure play Solar Energy ETF in Europe, offering targeted exposure to this important
clean energy theme . It has been classed as an article 8 investment under the
Sustainable Finance Disclosure Regulation which demonstrates its environmental
characteristics.”
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 and is
the first pure-play exposure to the global solar energy industry and its growth
prospects distinct from the wider clean energy investment universe which takes
in more companies and different technologies. It not only expands our offering
in the thematic space but adds significantly to our expanding range of clean
& renewable energy and ESG ETFs. ”
“Launching the Solar Energy ETF
expands our range of innovative ETFs and ETCs and is another European first
which we are delighted to bring to market with EQM Indexes. We are very proud
of the many firsts we have brought to the European ETF market including Cloud
computing, Emerging markets ecommerce, 5g infrastructure and medical cannabis
to name a few. We are not finished here, watch this “Space”.