CLNE
VanEck Global Clean Energy ETF
CLNE
VanEck Global Clean Energy ETF
-
NAV$5.58
as at 15-Nov-24 -
Total Net Assets$64.97M
-
Dividend Frequency1 each year
-
Management fee (p.a.)0.65%
-
Number of securities30
-
Inception Date08-Mar-21
Overview
Fund description:
Our clean energy ETF, CLNE gives investors a diversified portfolio of 30 of the largest and most liquid companies involved in clean energy production and associated technology and clean energy equipment globally. CLNE aims to provide investment returns before fees and other costs which track the performance of the Index.
Key benefits
Long-term growth opportunity
An investment in the global energy supply of the future which is transitioning to infinite clean energy away from finite non-renewable sources.
Targeted exposure
Targeted exposure to 30 of the largest global companies involved in the production of clean energy and technology & equipment businesses.
Diversification
A diversified portfolio across countries and companies which offers opportunities across a range of subsectors.
Index Key points
Index name
S&P Global Clean Energy Select Index
Overview
The S&P Global Clean Energy Select Index measures the performance of 30 of the largest and most liquid companies with businesses related to clean energy production and associated technology and equipment globally, from both developed and emerging markets. Relevant business activities include but are not limited to:
- biofuel & biomass energy production, technology & equipment
- ethanol & fuel alcohol production
- fuel cells technology & equipment
- geothermal energy production
- hydro electricity production, turbines & other equipment
- solar energy production, photo voltaic cells & equipment
- wind energy production, turbines & other equipment
Summary of Index methodology
A seven step process is followed to determine the Reference Index:
- Eligible universe
The eligible universe is all the companies in the S&P Global Broad Market Index whose shares are traded on a developed market exchange.
- Index Construction
In order to be considered for inclusion in the index companies are required to meet one of the clean energy screening criteria. Relevant business activities include but are not limited to:- biofuel & biomass energy production , technology & equipment
- ethanol & fuel alcohol production
- fuel cells technology & equipment
- geothermal energy production
- hydro electricity production, turbines & other equipment
- solar energy production, photo voltaic cells & equipment
- wind energy production, turbines & other equipment
- Business activity screening
Companies that are involved in the following business activities are then screened for exclusion based on certain business involvement and ownership criteria (which includes level of involvement and ownership thresholds where applicable):- Controversial weapons
- Small arms
- Military contracting
- Tobacco
- Thermal coal
- Oil sands
- Shale energy
- Arctic oil and gas exploration.
Detailed business involvement screening and ownership criteria (which includes level of involvement and ownership thresholds) for each of the business activities can be found at: https://www.spglobal.com/spdji/en/indices/esg/sp-global-clean-energy-index/
The effectiveness of an exclusionary screen is limited by the accuracy, completeness and accessibility of information and disclosure the relevant entity makes available or is willing to make available. There may be instances where the above screens may not exclude a company if data about the company is incomplete, inaccurate or unavailable. You may have differing views, opinions and understanding of the meaning of the terminology used in this section and PDS, to VanEck or S&P or their third party providers (including ESG research providers), and therefore your expectations of permitted investments may be different to the actual investments of the Fund.
- Media and Stakeholder Analysis Overlay
SPDJI uses RepRisk to screen controversies on environmental, social and governance risks. In cases where risks are presented, S&P Global Inc (’S&P Global’) releases a Media and Stakeholder Analysis (’MSA’)”, SPDJI will review constituents that have been flagged by S&P Global’s MSA to evaluate the potential impact of controversial company activities on the composition of the indices. If the company is removed from the index, the company would not be eligible for re-entry for one calendar year. For more information on RepRisk, please visit www.reprisk.com.
- Greenhouse gas (“GHG”) emissions screen
From the companies selected, those with a ‘carbon intensity’ score greater than 3 standard deviations above the mean of all selections (excluding the top and bottom 5%) are excluded and replaced with next highest ranked company with a lower carbon intensity score.
- “Carbon intensity” is a widely used measure of a company’s GHG emissions calculated as: tCO2e/USD 1 million revenue.
Where:
“tCO2e” is tonnes of carbon dioxide equivalent emissions, and
“carbon dioxide equivalent” is a standard unit for counting GHG emissions regardless of whether they're from carbon dioxide or another gas, such as methane.
- “Carbon intensity” is a widely used measure of a company’s GHG emissions calculated as: tCO2e/USD 1 million revenue.
- Clean energy exposure selection process
SPDJI assigns each company in the eligible universe a clean energy ‘exposure score’ as follows:
| Maximum clean energy exposure | Significant clean energy exposure | Moderate clean energy exposure | No business exposure |
|---|---|---|---|
|
1 |
0.75 |
0.5 |
0 |
- Companies with an exposure score of ‘0’ are eliminated.
- The 30 largest companies by free-float adjusted market capitalisation (“FMC”), with an exposure score of 1 are selected.
- If there are less than 30 companies with an exposure score of 1, the largest companies by FMC with an exposure score of 0.75 are selected until the count reaches 30.
- If, after step (iii), there are still not 30 constituents, the largest companies by FMC with an exposure score of 0.5 are selected until the count reaches 30.
- Weighting
Constituents are weighted based on the product of each constituent’s FMC and exposure score. The maximum weight of any company is capped.
Rebalances
The Index reconstituted entirely on a semi-annual basis, usually after the close of trading on the third Friday of April and October. In addition the existing constituents are reweighted after the close of trading on the third Friday of January and July.
For full details of the methodology, click here.
Index provider
S&P Dow Jones Indices LLC or its affiliates (“SPDJI”). SPDJI is not a related body corporate of VanEck.
The S&P Global Clean Energy Select Index (“the Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and licensed for use by VanEck. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed by VanEck. The Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of them makes any representation regarding the advisability of investing in the Fund. Such parties do not accept liability for any errors, omissions, or interruptions of the Index and do not give any assurance that the Fund will accurately track the performance of the index or provide positive investment returns. Inclusion of a security within the index or Fund is not a recommendation by any party to buy, sell, or hold such security.
Performance
Holdings & allocations
Dividends
Election of Dividend Reinvestment Plan (DRP)
You can elect DRP by logging into Link’s Investor Centre (https://investorcentre.linkmarketservices.com.au/Login). Once you are logged in, please proceed to the “Payments and Tax” tab and select “Reinvestment Update”.