PASADENA, Calif.--(BUSINESS WIRE)--Guinness Atkinson Asset Management today announced the launch of the SmartETFs Sustainable Energy II ETF (SULR) and SmartETFs.com/SULR, an actively managed global investment strategy designed to provide investors with dedicated exposure to the companies facilitating the world’s transition to sustainable energy.
As the demand for energy continues to rise, alternative energy has already become the cheapest and most viable source of energy supply, with energy efficiency being an additional source of cost reduction. Fossil fuel usage is expected to peak in the coming years, and the shift presents a substantial investment opportunity. SULR will allow investors to participate in the energy transition which is already underway, but still in its infancy. The United States Biden clean energy plan, European Union, and China have already proposed plans to transition to renewable energy, creating investable opportunities across the globe.
An infographic on this topic, available at this link, provides a concise view on the rise of sustainable energy.
The actively managed ETF will closely replicate the Guinness Atkinson Alternative Energy Fund [GAAEX] a mutual fund launched in 2006. The principle investment objective of the SULR is long-term capital appreciation through investment primarily in equity securities of the companies that provide or support alternative or renewable sources of energy. SULR has a global mandate and holds around 30 equally-weighted equity positions which are available to view on the SmartETFs website at www.SmartETFs.com.
“Sustainable energy is now cheaper than conventional energy,” said Jim Atkinson, CEO of Guinness Atkinson Asset Management. “The economics are clear, and we believe the shift will be rapid. We want to provide investors with an intelligent way to invest in the energy transition. We continue to believe that an actively-managed, equally-weighted approach is the best way to capitalize on the investment opportunity.”
The SmartETFs Sustainable Energy II ETF will provide investors with broad-based exposure to renewable energy themes. This may include investments in companies that develop or deliver related technologies that produce, generate, transport, deliver, or extend energy applications in a way that makes alternative or renewable energy more efficient and accessible. The ETF expects to invest in energy companies that generate power through solar, wind, hydroelectric, tidal wave, geothermal, biomass, or biofuels and in companies that provide the equipment and technologies that enable these sources to be tapped, used, stored, or transported.
The SmartETFs Sustainable Energy II ETF will be managed by a team of portfolio managers who also manage the Guinness Atkinson Alternative Energy Fund (GAAEX). The team brings significant experience in portfolio management and deep knowledge of the global energy industry and trends to the new fund. The managers currently serve as a co-managers of the Guinness Atkinson Alternative Energy Fund, with two of them serving as co-managers of the Guinness Atkinson Global Energy Fund. The team has over 30 years of combined experience in the energy sector analysis and investing, and over two decades of combined portfolio management experience.
The SmartETFs Sustainable Energy II ETF will trade on the Cboe under the symbol SULR. The fund will be available at most major brokerage firms including Charles Schwab, Fidelity, and T.D. Ameritrade.
SmartETFs are a family of exchange traded funds that focus on four mega themes that are driving change: Innovation, the Rise of Asia, Demographics, and Social Progress.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus, please call (866) 307-5990 or visit our website at www.SmartETFs.com. Read the prospectus carefully before investing.
You can lose money investing in the SmartETFs Sustainable Energy ETF. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
Prices of energy, whether traditional or sustainable, may fluctuate or decline due to many factors, including international political or economic developments, real or perceived, demand for energy and sustainable energy, production and distribution policies of OPEC (Organization of Petroleum Exporting Countries) and other oil-producing countries, energy conservation projects, changes in governmental regulations affecting companies in the energy sector, including Sustainable Energy companies, changes in technology affecting Sustainable Energy, and changes in tax regulations relating to energy.
A decline in energy prices would likely have a negative effect on securities held by the ETF. The ETF's focus on the energy sector to the exclusion of other sectors exposes the ETF to greater market risk and potential monetary losses than if the ETF's assets were diversified among various sectors. Funds distributed by Foreside Fund Services, LLC.