ETF offers a broad, complete exposure to the New Energy Economy, a multi-decade theme already driving innovation in energy production, distribution, storage and use
NEW YORK–(BUSINESS WIRE)–Blue Horizon Capital, an index, advisory and research company focused on helping investors capture the unique opportunities in the fast-growing New Energy Economy, today announced the launch of the Blue Horizon BNE ETF (NYSE: BNE). Exchange Traded Concepts is the issuer of this new fund, which trades on the New York Stock Exchange tracking an index developed by the Blue Horizon team.
BNE is designed to be a one-fund solution, capturing the major developments and disruptions taking place across all five segments of the New Energy Economy, which include:
- E-Mobility, including electric vehicles, enabling technologies and e-tools;
- Energy Storage, including batteries, components, hydrogen, and battery recycling;
- Performance Materials, including lithium, nickel and rare earths;
- Energy Distribution, including smart grid technology and charging infrastructure; and
- Energy Generation, including solar, wind, biomass and fuel cells.
“Many investors and advisors already understand the disruptive power of the New Energy Economy, but for too long have had to invest ‘on the bookends,’ focused on how energy is being produced, such as through solar technology, and how energy is being used, such as in electric cars,” said Govind Arora, Partner and President of Blue Horizon. “That approach misses much of the innovation taking place in storage, distribution and efficiency of final energy delivery, which should drive the growth of the New Energy Economy for decades to come. BNE’s holistic approach gives investors a powerful tool for accessing the entire New Energy Economy.”
BNE is designed to track the performance of the Blue Horizon New Energy Economy 100 Index (“the index”), a rules-based global index of 100 companies that are disrupting and benefiting from the shift to the New Energy Economy. Constituents are chosen in accordance with predetermined criteria, including minimum market capitalization and average daily value traded. The Index is equally weighted and rebalances semi-annually.
“Having appropriate global exposure is essential if investors are looking to capture the full depth and breadth of the New Energy Economy, since some of the most important advancements and use cases are currently to be found in Asia, Europe and elsewhere,” added John Mitchell, Partner and Head of Thematic Strategy with Blue Horizon. “Diversification across and within New Energy Economy segments will be key, and with BNE, investors and advisors will have a single investment vehicle with broad and balanced exposure to the global New Energy Economy.”
The Blue Horizon leadership team is comprised of experts who bring deep subject matter knowledge from the finance and investing space, as well as within key areas of the New Energy Economy itself. Mr. Mitchell, for example, was previously President for Albemarle Corporation’s Lithium and Advanced Materials business, where he was a thought leader in energy materials and energy storage developments, and prior to that held senior roles in corporations that focused on hydrogen, private utility supply schemes, energy efficiency applications and biogas recovery. He brings almost 30 years of direct experience across many areas of the New Energy Economy.
Mr. Arora also held a senior role with Albemarle, as Chief Commercial Officer for the firm’s lithium business working with global leaders in energy storage, prior to joining Blue Horizon. He was previously President of Stanley Black & Decker’s Latin American Group, CFO for Stanley Black & Decker’s Global Emerging Markets business and CFO for Honeywell’s Process Solutions business in Asia, based out of China. In these roles, Mr. Arora both led and experienced the types of transitions that consumer and industrial product manufacturers have started to make as part of the New Energy Economy.
Greg Levinson, Partner and Head of Investment Strategy brings more than 25 years of experience in bank prop trading, hedge funds and alternative investments to the Blue Horizon team, and adds, “We equate the current state of the New Energy Economy with where the internet was 25 years ago. The world is on the cusp of historic changes in the ways energy is generated, delivered and used. We can already see tangible changes in our daily lives, as more electric vehicles take to the roads and charging stations and other infrastructure enhancements become more commonplace. But like the internet, this is a long-term growth story, and having a diversified, liquid, tax efficient vehicle will be key as investors look to build their exposure to this thematic. We could not be more pleased to be bringing the BNE ETF to the market.”
You can learn more about the fund here: www.BNE-etf.com.
About Blue Horizon Capital
Blue Horizon Capital is an index, advisory and research company wholly focused on helping investors capture the unique opportunities in the fast-growing New Energy Economy. The firm was founded and is led by an experienced leadership team that brings decades of collective experience in areas such as energy generation, storage and distribution, performance materials and more. Learn more here: www.BHC-invest.com
About Exchange Traded Concepts
Exchange Traded Concepts is a private-label ETF advisor that launches custom domestic and international equity and fixed income exchange traded funds through a complete turnkey solution. ETC currently manages, advises and sub-advises 27 ETF’s with more than $3 billion in AUM. ETC’s ETF-In-A-Box TM Solution provides an efficient and cost-effective method to bring exchange-traded funds to market. Additional information can be found on the Exchange Traded Concepts’ website.
The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The summary and statutory prospectuses contain this and other important information about the investment company, and it may be obtained by calling 800-123-4567 or visiting www.BNE-etf.com. Read it carefully before investing.
Investments involve risk. Principal loss is possible. The fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Index, and consequently the Fund, is expected to concentrate its investments in real estate companies. As a result, the value of the Fund’s shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries.
New Energy Ecosystem Companies include energy, industrial, infrastructure, and logistics companies, among others, and will therefore be susceptible to adverse economic, environmental, business, regulatory, or other occurrences affecting such companies. New Energy Ecosystem Companies may be affected by the obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants and general economic conditions. In addition, intense competition and legislation resulting in more strict government regulations and enforcement policies and specific expenditures for cleanup efforts can significantly affect this sector.
The Fund’s investments will be concentrated in an industry or group of industries to the extent that the Index is so concentrated. In such event, the value of the Shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries. To the extent the fund invests more heavily in the Energy Sector, Industrial Sector and Materials Sector, its performance will be especially sensitive to developments in those sectors. The Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund. As a result, the Fund may be more exposed to the risks associated with and developments affecting an individual issuer or a smaller number of issuers than a fund that invests more widely. This may increase the Fund’s volatility and cause the performance of a relatively smaller number of issuers to have a greater impact on the Fund’s performance. The Fund may invest in foreign securities, which involve political, economic and currency risks, greater volatility, and differences in accounting methods. The Fund may also invest in smaller companies, which involve additional risks such as limited liquidity and greater volatility.
The Fund is a recently organized investment company with a limited operating history. As a result, prospective investors have a limited track record or history on which to base their investment decision.
Exchange Traded Concepts, LLC is advisor to the fund. Blue Horizon serves as the index provider. The fund is distributed by Quasar Distributors, LLC which is not affiliated with Blue Horizon, Exchange Traded Concepts, LLC, or any of their affiliates.
Chris Sullivan/Rosa Sobrino