Legal & General Investment Management has announced the launch of the L&G Energy Transition Commodities UCITS ETF.

LGIM says the fund is the first of its kind and offers investors exposure to commodities essential to the energy transition. These include transition metals, lower-carbon transition energy sources such as natural gas and ethanol, and carbon pricing. In total, the fund provides access to 18 commodities, including the allocation to carbon markets.

Aanand Venkatramanan, Head of ETFs, EMEA at LGIM, said, “We are incredibly excited to bring this innovative commodities ETF to market, providing a truly unique proposition which enables investors to seek to benefit from the significant growth potential of the energy transition, whilst also providing inflation risk mitigation and uncorrelated exposure.

Like the industrial revolution, the energy transition is a commodity story, but with a new cast of characters. Compared with today’s energy mix, we believe the energy transition is built on new inputs, which in our view are underrepresented in current commodity portfolios. This is why we built the ETF around transition metals, transition energy and carbon pricing; capturing the next phase of demand, and opportunity, in the story.”

The fund has been categorised as Article 6 under the Sustainable Finance Disclosure Regulation.

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