The ETF is now trading on the TSE under the symbol HCLN.
Harvest Portfolios Group Inc. completed last week the initial offering of Class A Units of the Harvest Clean Energy ETF (TSE: HCLN). The units of the ETF commenced trading on the Toronto Stock Exchange on January 14. (ETF Express)
Harvest Clean Energy ETF
The innovative ETF is Canada’s first clean energy ETF to list on the TSX. It aims to provide Canadian investors access to the developing clean energy sector.
The ETF invests in a passively managed and diverse portfolio of 40 equally weighted clean energy companies. These are drawn from the Clean Energy Investable Universe and comprise equities listed on selected exchanges across the globe. These must be categorized as renewable energy or renewable energy generation.
Portfolio selection is made using a systematic process to select the top 40 largest Clean Energy Issuers measured by market capitalization.
The fund charges a management fee of 0.40% per annum.
Clean energy: Unprecedented levels of interest and capital
Michael Kovacs, President, and CEO of Harvest: “We are very excited to launch this unique and low-cost Clean Energy ETF in Canada. This is an exciting and growing space, an area that is getting the proper political and societal attention it needs as more Canadians look to environmental factors when investing.”
“There are large sources of Government and Private capital flowing into this space at unprecedented levels which we see continuing to grow into the future. With the changes going on in Energy generation, the future is definitely Clean.”
Huge stock market opportunity
According to Kovacs, the fund allows investors to achieve two goals. They can act on social and environmental beliefs while taking part in a once-in-a-generation stock market opportunity.
He cited bullish factors as follows:
- After a decade of flat performance, the clean energy sector was one of the best performing sectors last year.
- The pandemic year will go down in history as the year of clean energy’s unstoppable rise, according to think tank Energy Innovation in a recent Forbes article.
- Solar energy costs have turned a corner. Solar is now a cheaper source of power in most parts of the world than natural gas and coal (International Energy Agency).
- The Biden presidency brings the U.S. back to the Paris Climate Accord. Biden also has a broad green energy platform that will encourage the renewable energy sector.
- The ETF will appeal to a wide section of investors, particularly millennials and those looking for a growth component in their portfolio.
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