LGIM Launches New ETF Targeting Energy Transition Commodities

Legal & General Investment Management (LGIM) has launched the L&G Energy Transition Commodities UCITS ETF, a fund designed to provide investors with exposure to commodities that play a crucial role in the energy transition. The fund aims to address investor demand for strategies that mitigate inflation risk and offer uncorrelated market exposure, particularly given the current macroeconomic backdrop. It focuses on three commodity groups: transition metals used in the production, storage, and distribution of clean energy; lower-carbon transition energy sources like natural gas and ethanol that help address peak energy demand and hard-to-abate sectors; and carbon pricing, which incentivizes the shift to lower-carbon activities. LGIM emphasizes the diversification benefits of the fund, with over 50% of its constituents typically not found in traditional commodity portfolios. The ETF provides access to 18 liquid commodities, including an allocation to carbon markets. This new fund adds to LGIM’s existing lineup of energy transition-focused ETFs, such as the L&G Clean Energy UCITS ETF, L&G Battery Value-Chain UCITS ETF, and L&G Hydrogen Economy UCITS ETF. The L&G Energy Transition Commodities UCITS ETF is categorized as Article 6 under the EU’s SFDR regulation and is available to wholesale and institutional investors in several countries, including the UK, France, Germany, Italy, Netherlands, Norway, Denmark, Sweden, Finland, Austria, Luxembourg, Switzerland, Spain, and institutional investors in Singapore. Resources: https://www.esgtoday.com/lgim-launches-new-etf-targeting-energy-transition-commodities/