Sygnia has listed the Itrix Sustainable Economy Exchange Traded Fund (SYGSE) on the Johannesburg Stock Exchange (JSE).
The Sygnia Itrix Sustainable Economy ETF tracks the S&P Kensho Sustainable Technologies Index (KSUSTNP).
The ETF measures the performance of companies with exposure to numerous modern industries, including:
- Smart transportation and manufacturing
- Sustainable agriculture
- Clean power
- Space exploration
- Intelligent infrastructure
- Technologies that enable remote working
The top companies in the KSUSTNP include Iridium Communications, Teledyne Technologies, Valmont Industries, First Solar, Maxar Technologies, and HEICO.
Other significant holdings are Enphase Energy, Northrop Grumman, Constellation Energy, and Honeywell.
83.9% of the companies in the ETF are based in the United States.
The ETF has a strong bias towards industrials at 47.7%, followed by information technology at 21.4% and utilities at 9.4%.
The ETF, like most US-based funds, had a tough time in 2022, with a return of -16.44%.
However, the S&P Kensho Sustainable Technologies Index performed significantly better over the long term.
The 3-year annualised return was 21.89%, and the 5-year annualised return was 19.05%.
It should be noted that the index was only launched in April 2022. All information for an index prior to its launch date is hypothetical back-tested, not actual performance.
Back-tested performance reflects the application of an Index methodology and selecting index constituents with the benefit of hindsight.
The actual returns may, therefore, differ significantly from, and be lower than, back-tested returns.
The chart below shows the annualised return of the S&P Kensho Sustainable Technologies Index (ZAR).
Kyle Hulett, head of investments at Sygnia, said finding themes that provide growth in a low-growth world is critical to successful investing.
“Innovation stocks focused on building a sustainable economy present key opportunities,” he said.