Global investment manager VanEck has launched a new European exchange-traded fund (ETF) for sustainable food companies. With the aim of providing exposure to companies such as plant-based meat and dairy producers, VanEck claims the ETF provides an efficient vehicle for accessing the companies benefitting from these long-term structural trends.
“The production of food, especially meat, harms both the environment and health”
With global population increases and climate change-related disruptions to an already fragile food system, ETF and mutual fund manager VanEck recognizes the need to drive sustainable agricultural processes and technologies. Plant-based meat and dairy alternatives, vertical farming, precision agriculture, functional ingredients, and vegan organic and health foods will all form part of the platform, reports ETF Strategy.
The VanEck Sustainable Future of Food UCITS ETF has been listed on London Stock Exchange in US dollars (VEGI LN) and pound sterling (VEGB LN) as well as on Deutsche Börse Xetra in euros (VE6I GY). The fund is linked to the MVIS Global Future of Food ESG Index which selects its constituents from developed market stocks with market capitalizations above $150 million and average daily trading volumes greater than $1 million.
Vegan ETF investments
This June also saw VegTech Invest celebrate the listing of the VegTech Plant-based Innovation & Climate ETF (NYSE: EATV) on the New York Stock Exchange, the world’s first ETF focused on plant-based innovation and alternative proteins, featuring constituents like Beyond Meat and Oatly.
“The production of food, especially meat, harms both the environment and health,” stated Martijn Rozemuller, CEO at VanEck Europe. “Without profound changes in agriculture and food production, the world will not be able to stop climate change. With all this in mind, consumers around the world are now demanding alternatives. The demand for cleaner, healthier and sustainable food is increasing.”