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  • Writer's pictureStephen Walters

An ETF on the theme of sustainable activities

For those of you with either new cash, or with profits you’ve taken; or money divested from an unfulfilling fund; I propose you consider a new ETF fitting the global, thematic and ESG principles of Dexterity’s investment approach.

The Rize Environmental Impact 100 addresses the six objectives set out in the EU’s ‘taxonomy for sustainable activities’ - climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, pollution prevention and control, protection and restoration of biodiversity and ecosystems.

Instantly attracted to the theme, I cooled my ardour to check its overlap with other themes; especially Water and Innovative Technology. Across the holdings in IH2O and ITEP, 7% and 2% overlap. I judged those no hindrance to add LVNG to my portfolio, and invested last week.

One of my motives for thematic investment is distinct diversification, because that’s the only free-of-charge way I know to reduce risk. Although a few companies - eg Tesla, Xylem, Microsoft, Vestas, Samsung, Nvidia - do each appear in more than one theme, I confirm the largest holding in the portfolio - American Water Works at 0.92% of the total - continues lower than the 1% limit I’ve set for any holding.

The Factsheet and Key Investor Information Document for LVNG are here. As always, I recommend you seek guidance if you aren’t confident to make investment decisions alone.

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