Legal and General Investment Management (LGIM) has launched the L&G Energy Transition Commodities UCITS ETF to provide exposure to the energy transition through commodity futures. The fund will target a combination of commodities deemed central to the energy transition, including critical metals, natural gas and ethanol. It will also allocate capital to support carbon markets. “Like the industrial revolution, the energy transition is a commodity story, but with a new cast of characters,” said Aanand Venkatramanan, EMEA Head of Exchange-traded Funds (ETF) at LGIM. “Compared with today’s energy mix, we believe the energy transition is built on new inputs, which in our view are underrepresented in current commodity portfolios – this is why we built the ETF around transition metals, transition energy and carbon pricing; capturing the next phase of demand and opportunity in the story.” The fund will be available to both wholesale and institutional investors registered in the UK, France, Germany, Italy, the Netherlands, Denmark, Sweden, Finland, Austria, Luxembourg, Switzerland and Spain. Institutional investors in Singapore will also have access to the fund.
