Legal & General Investment Management ("LGIM") has today announced the expansion of its ETF range with the launch of the L&G Energy Transition Commodities UCITS ETF ("the Fund"). The Fund aims to provide exposure to the three supporting pillars of the energy transition through commodity futures, harnessing the growth potential embedded within the next chapter of the global energy story.

The Fund, which is a first to market, offers investors liquid and diversified exposure to a combination of commodities central to the energy transition; providing access to three distinct commodity groups with supportive demand side dynamics:

  • Transition metals that are needed to produce, store and distribute clean energy
  • Lower-carbon transition energy sources such as natural gas and ethanol; which can help overcome peak energy demand and the challenge of 'hard to abate' sectors
  • Carbon pricing that increases the cost of polluting activities, incentivising the switch to low-and-no-carbon activities

Offering diversification and hedging opportunities, the Fund provides a differentiated proposition with over 50% of the constituents not typically found in traditional commodity portfolios - many of which have been made available to UCITS investors for the first time1. The Fund provides access to 18 liquid commodities in a diversified and liquid manner, including an allocation to carbon markets.

Illustrating LGIM's strategic intent to diversify, the Fund builds on LGIM's broader range of commodities ETFs - including the L&G All Commodities UCITS ETF, the L&G Longer Dated All Commodities UCITS ETF and the L&G Enhanced Commodities UCITS ETF. The expansion of the range reflects the continued demand for investment solutions with low correlation to other asset classes, allowing clients to tap into potential growth opportunities across the real economy. Today's launch also complements LGIM's thematic ETFs within the energy and resources range, which include the L&G Clean Energy UCITS ETF, L&G Battery Value-Chain UCITS ETF and L&G Hydrogen Economy UCITS ETF; all of which provide investors access to the growth potential of the energy transition.

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Legal & General Group plc published this content on 17 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 April 2024 08:01:03 UTC.