"The commodities that comprise the index serve one of the three purposes associated with the theme: (1) they are used to construct the new energy infrastructure (e.g. copper, aluminum, and silver); (2) they are 'bridge fuels' that are less carbon-intensive and will provide energy between now and the net-zero state (e.g. natural gas); or (3) they incentivize investment in the new energy infrastructure (e.g. carbon credits)," the companies said in a press release.
Casturo said the index breaks new ground in energy industry investing.
“The existing benchmarks' ... compositions are based on old world energy sources,” he said. “If there is a public agenda to try to transition away from that, there needs to be a corresponding revolution ... in financial products.”
The underlying investments for the fund will be standard commodities based on the three needs that Gleich described earlier. The fund will also have a flat fee of 80 basis points.
“The investment in infrastructure required to build a new energy system is massive, and it will fundamentally change the commodities landscape. The Quantix Energy Transition index offers exposure for investors seeking to capture this evolutionary theme. We are pleased to partner with Harbor in bringing this cost-effective, exciting new ETF to market,” Casturo said in the press release.