The Rize Circular Economy Enablers UCITS ETF (CYCL) seeks to invest in the leading enabling companies that potentially stand to benefit from our transition to a more circular economy. These are companies that view the shift to a circular economy as a means of achieving truly sustainable growth by decoupling productive economic activities from the linear consumption of the Earth’s finite resources and thereby reducing pressure on our ecosystems and environment. These are companies that are making a substantial contribution to “The Transition to a Circular Economy” objective of the EU Taxonomy of Sustainable Activities, either through their own Circular Products and Services or through Enabling Products and Services that support (i.e. enable) other companies (i.e. industry practitioners) to enhance circularity within their own business models. CYCL seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Foxberry SMS Circular Economy Enablers Index.
- AUM ($USD): 1,935,235
- TER: 0.45%
- ISIN: IE000RMSPY39
- Base Code: CYCL
- SFDR Classification: Article 9
- MSCI ESG Rating: AA
The impact of our throwaway culture on the planet is profound. We extract raw materials from the Earth, use them to create products and then dispose of those products once they are no longer useful or desired. This linear economic model of “take-make-waste” is no longer sustainable and our transition to a more circular one must rapidly accelerate. The circular economy is a restorative and regenerative economic system that aims to keep resources in use for as long as possible, eliminate waste and pollution and create value for businesses and communities. A circular economy requires significant systemic change across all sectors of the economy, including design, use and recovery. Fortunately, such change also brings about new opportunities for innovation, growth and sustainability. To achieve a greener, fairer future, we must reduce waste and preserve the world’s finite resources by keeping materials in use through circular processes. Advanced technologies and techniques are already helping an array of industries make reuse and recycling more central to their operations. Our pioneering investment strategy and ETF – Europe’s first Circular Economy Enablers ETF – provides investors with exposure to companies that are driving the circular economy forward by developing new business models, technologies and systems that enable the transition to a more sustainable, resource-efficient and regenerative economy. These are companies that are creating a future that is not only circular, but also prosperous and resilient.
Favourable Growth Prospects
CYCL is Europe’s first circular economy enablers ETF, and provides investors with exposure to companies that stand to benefit from our transition to a circular economy.
Powered by Sustainable Market Strategies®
CYCL is purpose-built in collaboration with Sustainable Market Strategies, an independent ESG intelligence firm based in Montreal, Canada, and leverages their unique insights and proprietary classification system of companies that are aligned with “The Transition to a Circular Economy” objective of the EU Taxonomy for Sustainable Activities.
CYCL’s composition transcends classic sector, size and geographic classifications by tracking a global theme.
In a single trade, CYCL delivers access to dozens of companies that are favourably positioned to ride the tailwinds of the circular economy enablers theme.
CYCL invests in companies within the 4 circular economy business models of the SMS Circular Economy Enablers thematic classification addressing primary linear challenges across 7 Key Product Value Chains which have been inspired from an anthology of circular economy literature published by the European Commission. The classification was built in partnership with sustainability experts Sustainable Market Strategies and is an enabling taxonomy designed for the investment and research communities with the aim of identifying companies that are making a substantial contribution to “The Transition to a Circular Economy” objective of the EU Taxonomy. Each company is assessed for its relative contribution based on the extent to which it provides its own enabling Circular Products and Services or Enabling Products and Services that support (i.e. enable) other companies (i.e. industry practitioners) to enhance circularity within their own business models.
Top 10 Holdings
|PACKAGING CORP AMER COM||US6951561090||5.34||USD|
|UNITED RENTALS INC COM||US9113631090||5.34||USD|
|WESTROCK CO COM||US96145D1054||5.3||USD|
|KLABIN SA UNITS (1 COM & 4 PRF)COM UNIT||BRKLBNCDAM18||4.81||BRL|
|INTERNATIONAL PAPER CO||US4601461035||4.78||USD|
|COMMERCIAL METALS CO||US2017231034||4.76||USD|
|HERC HLDGS INC COM||US42704L1044||4.68||USD|
|STEEL DYNAMICS INC COM||US8581191009||4.64||USD|
|WATTS WATER TECHNOLOGIES INC||US9427491025||4.47||USD|
|BADGER METER INC COM||US0565251081||4.4||USD|
|Net Assets||USD 1,935,235|
|NAV per share||5.0036|
|Total Expense Ratio||0.45|
|Index Name||Foxberry SMS Circular Economy Enablers Index / FXBYCYCL|
|Thematic Classification||SMS Circular Economy Enablers Thematic Classification|
|Index Replication Method||Physical – full replication|
|No. of holdings||29|
|Issuer||Rize UCITS ICAV|
|Promoter||Rize ETF Limited|
|Manager||IQ EQ Fund Management (Ireland) Limited|
|Investment Manager||IQ EQ Fund Management (Ireland) Limited|
|Depositary / Custodian||Northern Trust Fiduciary Services (Ireland) Limited|
|ISA Eligible (UK)||Yes|
|SIPP Eligible (UK)||Yes|
|Reporting Fund Status (UK)||Yes|
|Equity Fund (DE)||Yes|
|SFDR Classification||Article 9|
- United Kingdom
|Exchange||Currency||Listing Date||SEDOL||Bloomberg Ticker||RIC|
|Deutsche Börse Xetra||EUR||31-May-23||BPVDV21||CIRC GY||CIRCG.DE|
|London Stock Exchange||USD||31-May-23||BNYD351||CYCL LN||CYCL.L|
|London Stock Exchange||GBP||31-May-23||BNYD3M8||CIRC LN||RICIRC.L|
|SIX Swiss Exchange||CHF||Pending||BNYD3N9||CYCL SE||CYCL.S|
Research & Insights
Fund DocumentsAll Other Documents
The Fund may be subject to the risks associated with (1) companies that provide products and services that are circular in nature and/or directly contribute to an improvement in the state of the natural environment (for example, companies involved in recycling activities may be negatively impacted by weakened demand for their services as a result of waning government support for circular initiatives in the future, or, conversely, may be negatively impacted by increased competition as circular economy initiatives gain traction) and/or (2) companies that provide product and services that support (i.e., enable) other companies (i.e., industry practitioners) to enhance circularity within their own business models (for example, such enabling company might be exposed to the risks of weakening demand from companies from the companies/industries that they provide enabling services to due to idiosyncratic risks and economic challenges facing those particular companies/industries.
Some companies may be smaller and less experienced companies, with limited product lines, markets, or financial resources and fewer experienced management or marketing personnel. They may experience extreme price and volume fluctuations that are often unrelated to their operating performance.
The Index is typically comprised of a mix of micro, small, mid, and large capitalisation companies. Micro and small capitalisation companies may be more vulnerable to adverse business or economic events than larger, more established companies and may underperform other segments of the market or the equity market as a whole. Securities of micro and small capitalisation companies generally trade in lower volumes, are less liquid, and are often more vulnerable to market volatility and greater and more unpredictable price changes than larger capitalisation stocks or the stock market as a whole.
Other: (1) Third-party service providers (such as the ICAV’s depositary) may go bankrupt and fail to pay money due to CYCL or return property belonging to CYCL. (2) If the Index provider stops calculating the Index or if CYCL’s license to replicate the Index is terminated, CYCL may have to be closed. (3) It may not always be possible to buy and sell CYCL’s Shares on a stock exchange or at prices closely reflecting the Net Asset Value. (4) There is no capital guarantee or protection on the value of CYCL and investors can lose all the capital invested in CYCL. (5) Please refer to the “Risk Factors” section of the ICAV’s Prospectus and the Fund Supplement.