New York-based asset manager VanEck has listed a new exchange-traded fund (ETF) that aims to support sustainable food production and development, on the London Stock Exchange and Deutsche Börse Xetra.
The VanEck Sustainable Future of Food UCITS ETF offers investors a pooled selection of innovative food companies from around the world that contribute to more sustainably produced food.
It closely tracks the performance of the MVIS Global Future of Food ESG Index, which adheres to environmental, social and governance (ESG) criteria and is set up as a pure-play product. Only companies that generate at least 50% (25% for current components) of their revenues in the food sector or with innovative agricultural technologies are included.
In addition, companies that produce organic food and those that have high standards relating to food waste, food safety or environmental impact are also included in the index. Investment opportunities are primarily offered by alternative proteins, new types of dairy products and the technologies used to produce these foods.
With the new ETF, investors will invest in about 35 stocks that are positioning themselves early for the transformation of the food industry, which VanEck says is still several decades away. The ETF will focus on three key areas: food technology, precision agriculture, and agricultural sustainability.