Leading Australian fund manager, BetaShares, is preparing for upcoming launches of new ETFs that will offer investors exposure to two of the world’s most important alternative energy sources – namely, solar energy and uranium – both of which are forecast to benefit from the ongoing global energy transition. The new funds will be the first ETFs in Australia to offer dedicated exposure to these sectors.
- BetaShares Solar ETF (TANN) will provide exposure to leading global companies involved in the solar energy industry, including solar panel manufacturers, inverter suppliers, installers, manufacturers of solar-powered charging and energy storage systems, and providers of solar project finance.
- BetaShares Global Uranium ETF (URNM) will provide exposure to a portfolio of global companies involved in the mining, exploration, development and production of uranium, modern nuclear energy, or companies that hold physical uranium or uranium royalties.
Importantly, these funds will reduce stock specific and geographic risk compared to investing in individual solar energy and uranium companies – an important consideration given the risks associated with individual projects in these industries.
Global use of these energy sources is predicted to increase on the back of several powerful trends – including efforts to reduce carbon emissions, the need to improve energy security, improvements in safety and reliability of both of these alternative energy sources, as well as improving economics for both these technologies.
Under International Energy Agency (IEA) modelling, solar energy is projected to grow from 3% of total electricity production in 2020 to 30% by 2050 in order to meet emission reduction goals under the Paris Agreement on Climate Change. The same modelling projects that the energy created from nuclear power would ideally need to double by 2050 – from 400GW per year to 800GW – to be consistent with a net-zero carbon emissions target.
BetaShares CEO, Alex Vynokur, said the use of alternative energy sources will increase as a result of the critical need to reduce carbon emissions. TANN and URNM will allow investors to invest in this powerful megatrend that is changing the way our world is being powered.
Our new TANN ETF will offer investors exposure to a portfolio of leading companies that are making solar energy more accessible, reliable and a part of the globe’s power grid. Importantly, it is suitable for investors who wish to ensure their portfolios include ethical and responsible exposures,” Mr Vynokur said.
“The global market for uranium is currently in a substantial supply-demand deficit driven by increasing acceptance of nuclear energy as a safe, reliable and low-carbon energy source. In fact, the European Commission has proposed the inclusion of nuclear energy in the EU Taxonomy for sustainable activities. It’s clear that uranium has an important role to play in maintaining the world’s energy security, as well as acting as a bridge and complement to renewable energy solutions.
“Both TANN and URNM are the first of their kind to be made available to Australian investors. We are proud to continue to expand the universe of opportunities available to investors seeking to add exposure to long-term megatrends to their portfolios,” Mr Vynokur concluded.
Subject to regulatory approvals, TANN and URNM are expected to start trading on the ASX in June 2022.