Australian fund manager BetaShares has announced the upcoming launch of its thematic exchange-traded fund (ETF) aimed at taking advantage of megatrends showing a shift towards more plant-based alternatives or sustainably sourced food.
The BetaShares Future of Food ETF (IEAT) has been designed to expose investors to sustainable companies involved in the production, distribution and consumption of food across the globe. Companies will need to demonstrate their engagement in food chain improvement or food supply and food production for inclusion in the fund’s portfolio.
Specific organisations to which investors will have access are Beyond Meat, which produces plant-based meat substitutes, Tattooed Chef, which specialises in plant-based ready-to-eat frozen meals, and global food product company Danone, which is increasing its presence in the plant-based dairy market.
The thematic ETF has been underpinned by numerous megatrends regarding increased awareness of the impact livestock has on greenhouse gas emissions, animal welfare considerations, the rising global population and improving living standards.
BetaShares chief executive Alex Vynokur noted the Future of Food ETF can provide investors with more cost-effective and convenient access to a portfolio of companies that have prioritised a sustainable perspective on food choices that can shape future procedures.
“BetaShares has a proud track record of selectively launching innovative new funds available to investors,” Vynokur said.
“Our leading thematic range, which will soon include IEAT, is a perfect example of our continued work to give investors access to a greater range of high-conviction megatrends that will play out over the decades ahead.”
The ETF remains subject to regulatory approvals, but investors can expect IEAT to begin trading on the Australian Securities Exchange at the end of May.
The new fund represents BetaShares’ 13th thematic offering, having previously launched ETFs covering climate change, global cybersecurity and Asian technology companies.
In March, the manager released an offering that invests in quality Australian organisations.
