BetaShares has announced the launch of new ETFs to offer investors access to two of the world’s most significant alternative energy sources.
BetaShares Solar ETF (TANN) and BetaShares Global Uranium ETF (URNM) are set to be launched on the ASX in June 2022.
According to the fund management giant, TANN will provide investors with exposure to the solar energy industry, including companies involved in the manufacturing of solar panels, solar-powered charging and energy storage systems, inverter suppliers, installers, and solar project finance providers.
URNM, on the other hand, will capture global companies involved in modern nuclear energy, the development and production of uranium and mining exploration. Companies that hold physical uranium or uranium royalties will also be included.
BetaShares explained that TANN and URNM aim to reduce the risks, both stock-specific and geographic, affiliated with investing in solar and uranium individually.
Globally, the use of solar and uranium as energy sources is expected to increase, chiefly on the back of the transition to net zero and the need to improve energy security.
Modelling conducted by the International Energy Agency recently showed that solar energy is projected to increase from 3 per cent of total electricity production in 2020 to 30 per cent by 2050, while nuclear power is set to double over the same period, increasing from 400GW to 800GW per year.
Alex Vynokur, CEO at BetaShares, said that TANN and URNM will allow investors to capitalise on these trends.
“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.
According to Mr Vynokur, the global market for uranium is currently in a considerable supply-demand deficit due to the acceptance of nuclear energy as a safe and reliable energy source.
“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,” he said.
TANN and URNM are set to become 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.
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