BlackRock has launched a new thematic global equity ETF in the US providing exposure to companies that are developing infrastructure and industrial solutions to support the environment.

The fund provides exposure to companies developing environmentally friendly infrastructure and industrial solutions.

The iShares Environmental Infrastructure and Industrials ETF (EFRA US) has been listed on Nasdaq with an expense ratio of 0.47%.

The ETF’s underlying reference is the FTSE Green Revenues Select Infrastructure and Industrials Index which selects its constituents from an initial universe of stocks with market capitalizations above $100 million that are listed in developed market countries, excluding South Korea.

The index screens for companies deriving at least 40% of their revenue from providing “Green” infrastructure and industrial solutions. Eligible activities must fall into one of 29 different micro-sectors that can be categorized into three themes: energy efficiency and emissions mitigation, pollution reduction, and land and resource optimization.

Constituents are weighted by float-adjusted market capitalization subject to a single stock cap of 6% and an aggregate cap of 45% on all stocks with weights above 4.5%.

As of 7 November, US-listed stocks accounted for nearly two-thirds (63.5%) of the total index weight with the next-largest country exposures being the UK (10.0%), Japan (9.2%), France (6.8%), and Canada (3.2%).

Stocks from the industrials sector make up over half (56.7%) of the index’s allocation, while companies classified to the utility sector account for another quarter (27.8%).

Notable positions included Xylem (7.1%), Westinghouse Air Brake Technologies (6.8%), Veolia Environ (6.6%), Albemarle (6.2%), and American Water Works (5.7%).

The fund makes distributions to investors on a semi-annual basis.