CLNE - VanEck Global Clean Energy ETF

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VanEck Global Global Clean Energy ETF CLNE

Fund description: CLNE gives investors a diversified portfolio of 30 of the largest and most liquid companies involved in clean energy production and associated technology and equipment globally. CLNE aims to provide investment returns before fees and other costs which track the performance of the Index. 

Index description: The S&P Global Clean Energy Select Index measures the performance of 30 of the largest and most liquid companies with businesses related to global clean energy production, technology and equipment, from both developed and emerging markets.

Management style:  Replication

Country of domicile: Australia

 as at 26-Nov-21

  • Exchange

    ASX
  • ASX code

    CLNE
  • Bloomberg index code

    SPGTCSAN
  • Index provider

    SPDJI
  • NAV1

    $10.88
  • Units outstanding1

    11,200,201
  • Net assets1

    $121.9M
  • Number of holdings1

    30
  • Inception date2

    08-Mar-21
  • ASX commencement

    10-Mar-21
1As of the close of the previous trading day.
2The date the ETF was seeded prior to quotation on ASX.

The NAV is generally calculated daily after all markets are closed for that day based on the closing price of the securities on the relevant foreign stock exchange. The NAV is then converted to AUD based on the relevant London WM Reuters 4pm exchange rate. This means, due to Australia's time zone, that the NAV will generally not be updated until around 1pm next business day.

as at 26-Nov-21

The Certification Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations. The Symbol also signifies that VanEck Vectors MSCI International Sustainable Equity ETF (ESGI) adheres to the strict operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product Provider. The Certification Symbol is a Registered Trade Mark of the Responsible Investment Association Australasia (RIAA). Detailed information about RIAA, the Symbol and ESGI's methodology, performance and stock holdings can be found at www.responsiblereturns.com.au, together with details about other responsible investment products certified by RIAA.

The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.
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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

Effective market open on 18 October 2021, SPDJI is implementing some changes to the index methodology involving: expanding the eligible universe, employing exclusion criteria and refining the carbon intensity screen. VanEck considers the changes are not adverse and are in investors’ best interests. As a result, effective market open on 18 October 2021, the information in the PDS dated 24 February 2021 in Section 8.1 – Summary of Index methodology is updated in accordance with the information accessible at https://www.spglobal.com/spdji/en/indices/esg/sp-global-clean-energy-select-index/.


Summary of Index methodology
A four 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.

  1. 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


  1. Companies with an exposure score of ‘0’ are eliminated.
  1. The 30 largest companies by free-float adjusted market capitalisation (“FMC”), with an exposure score of 1 are selected.
  2. 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.
  3. 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.

  1. 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.

  1. 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.

Index profile  

  • Bloomberg index code

    SPGTCSAN
  • Launch date

    06-Apr-21
  • Base date

    23-Jan-07
  • Rebalance Frequency

    Semi-annually

Top ten index constituents (%) Download all daily index constituents as at 31-Oct-21

Total constituents: 30
Constituent name
Ticker
Weightings (%)
PLUG POWER INC
PLUG US
5.55
ENPHASE ENERGY INC
ENPH US
5.38
SUNRUN INC
RUN US
5.04
SOLAREDGE TECHNOLOGIES INC
SEDG US
4.97
FIRST SOLAR INC
FSLR US
4.56
EDP RENOVAVEIS SA
EDPR PL
4.49
VESTAS WIND SYSTEMS A/S
VWS DC
4.46
GAMESA CORP TECNOLOGICA SA
GAM SM
4.36
BROOKFIELD RENEWABLE COR-A
BEPC CN
4.15
XINYI SOLAR HOLDINGS LTD
968 HK
4.07
Top ten total (%) 47.03
These are not recommendations to buy or to sell any security. Securities and holdings may vary.

Index country weightings (%) as of 31-Oct-21

  • Country

    Weightings (%)
  • United States

    42.9
  • Canada

    8.0
  • China

    7.9
  • New Zealand

    7.5
  • Israel

    6.9
  • Portugal

    4.5
  • Denmark

    4.5
  • Spain

    4.4
  • Austria

    3.9
  • Brazil

    2.2
  • Norway

    2.1
  • France

    2.0
  • Germany

    1.8
  • Japan

    1.6
  • Total

    100.2

Index sector weightings (%) as at 31-Oct-21

  • Sector

    Weightings (%)
  • Electrical Equipment

    33.0
  • Independent Power Producers & Energy Traders

    27.6
  • Semiconductors & Semiconductor Equipment

    25.1
  • Electric Utilities

    9.9
  • Oil, Gas & Consumable Fuels

    4.3
  • Total

    99.9