VanEck has unveiled a new thematic impact ETF in Europe targeting companies that ascribe to a ‘circular economy’ business model.

Martijn Rozemuller, CEO at VanEck Europe
The VanEck Circular Economy UCITS ETF has been listed on London Stock Exchange in US dollars (REUS LN) and pound sterling (REUG LN) as well as on Deutsche Börse Xetra in euros (REUS GY).
A circular economy aims to keep resources in use for as long as possible, extracting the maximum value from them whilst in use, before recovering and regenerating products and materials at the end of each service life.
The system contrasts with the traditional linear economy where resources and products are disposed of once they have been used.
Companies that ascribe to a circular economy business model contribute to the development of resource-efficient materials, production, and distribution solutions.
Martijn Rozemuller, CEO at VanEck Europe, said: “Our planet’s resources are becoming increasingly stretched and the world is struggling with the waste generated by single-use products. The VanEck Circular Economy ETF provides access to companies that effectively contribute to recycling or other forms of resource efficiency. By offering this ETF, we are responding to the current high level of interest in issues related to sustainable production and the environmental impact of our consumption.”
Methodology
The ETF follows the MVIS Global Circular Economy ESG Index which is constructed from a universe of developed and emerging market companies with market capitalizations greater than $150 million.
Violators of international norms as well as firms involved in controversial weapons, firearms, tobacco, and energy extractives are removed from the selection pool.
The methodology selects firms that derive at least 50% of their revenues from activities that contribute to the circular economy such as water purification and treatment, energy production from waste and biofuels, waste management solutions, and metal recycling services.
The index also includes companies that derive at least 50% of their revenues from selling products or services related to recycled, repurposed, or reused materials.
According to VanEck, the methodology leads to an index that directly supports UN Sustainable Development Goals on Responsible Consumption & Production and Clean Water & Sanitation.
Constituents are weighted by float-adjusted market capitalization subject to a single stock cap of 8%.
As of 25 October, US-listed stocks accounted for two-fifths (39.4%) of the index weight with the next-largest country exposures being Australia (9.9%), the UK (9.6%), Finland (7.3%), China (5.6%), and Japan (5.4%).
Industrial stocks dominated, making up over half (55.4%) of the total index weight, while companies in the materials sector accounted for another third (32.7%).
Notable positions included Waste Management (8.1%), Waste Connections (7.9%), Upm-Kymmene Oyj (7.3%), Republic Services (6.9%), Darling Ingredients (6.1%), Brambles (5.7%), Smurfit Kappa (5.3%), and Umicore (5.2%).
The ETF comes with an expense ratio of 0.40%.
The fund’s price tag is slightly higher than its direct competitor – the €600m BNP Paribas Easy ECPI Circular Economy Leaders UCITS ETF – which costs 0.30%. REUSE provides exposure to the 50 largest developed market stocks aligned with a circular economy business model related to one of the following five themes: circular supplies; resource recovery; product life extension; sharing platforms; and product as a service.