Range Funds debuts suite of energy industry ETFs

Jan 30th, 2024 | By | Category: Equities

Niche thematic specialist Range Fund Holdings has introduced four new global equity ETFs targeting companies within the following energy-related industries: natural gas, nuclear power, coal, and offshore oil services.

Tim Rotolo, Founder and CEO of Range Fund Holdings.

Tim Rotolo, Founder and CEO of Range Fund Holdings.

Listed on NYSE Arca, the new funds include the Range Global LNG Ecosystem Index ETF (LNGZ US), Range Nuclear Renaissance Index ETF (NUKZ US), Range Global Coal Index ETF (COAL US), and Range Global Offshore Oil Services Index ETF (OFOS US).

Each ETF comes with an expense ratio of 0.85% and has come to market in partnership with white-label ETF platform Exchange Traded Concepts.

Commenting on the unifying theme underlying the new product suite, Tim Rotolo, Founder and CEO of Range Fund Holdings, said: “We are thrilled to introduce our new suite of ETFs which emphasize energy abundance. We aim to provide investors who share our vision of the changing energy landscape with the opportunity to invest in powering the next decade.

“We view the energy transition as progressing into a new phase. Investors are increasingly recognizing the need for base load power solutions in support of renewables. Global energy demand has reached unprecedented levels, and perceptions of both ESG and fossil fuels have dimmed considerably.

“Simultaneously, governments, grappling with bureaucratic entanglements, are encountering difficulties in making timely decisions to determine how their near-term energy policies which rely on fossil fuels relate to pressures around climate change. This situation has created an opportunity for forward-thinking investors to allocate their resources.”

Methodology

Each ETF is linked to a proprietary index, maintained by Indxx, which selects its constituents from a universe of developed and emerging market stocks, excluding those listed or domiciled in China or Russia, with market capitalizations above $100 million. Master Limited Partnerships (MLPs) are also eligible for index inclusion.

Drawing from Range’s in-depth proprietary research, companies are chosen for each index using three distinct classifications: Pure Play (firms with current revenues exceeding 50% from the targeted industry); Pre-Revenue (firms primarily engaged in the targeted industry but not yet generating revenue); and Diversified (firms that derive less than 50% of their revenues from the targeted industry).

Selected constituents are market capitalization-weighted, adhering to specific constraints, including a maximum 10% weighting for any single Pure Play or Pre-Revenue firm, a limit of 3% for any individual Diversified firm, a collective cap of 49.5% for all stocks where individual weights exceed 5%, and an aggregate limit of 25% on all MLPs. Reconstitution and rebalancing occur semi-annually.

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