TriLine Index Solutions, the index and ETF development arm of Boone Pickens Capital Fund Advisors, recently announced the launch of a new renewable energy ETF with the symbol RENW. RENW will seek to track the Morningstar North America Renewable Energy Index, which is administered and calculated by Morningstar, Inc.'s index group to provide exposure to companies that operate across the full renewable energy supply chain, including renewable energy innovators, suppliers, adopters and end users.
The index is composed of two distinct constituent groups. The first constitutes 75% of the total index weight and consists of companies with meaningful revenue from renewable energy production or participation in businesses that rely on renewable energy, such as green transportation. The second group constitutes 25% of the total index weight and includes companies that are leaders in meeting their primary energy requirements from renewables. Renewable energy revenue and renewable energy usage are determined by data from Sustainalytics, a provider of global environmental, social and governance (ESG) research and ratings.
BP Capital Fund Advisors, in a statement, said just one of the reasons for this is they believe renewable energy demand will “grow dramatically” in the years ahead.
