SHANGHAI, July 19, 2022 /PRNewswire/ — On July 19, E Fund Carbon Neutral 100 ETF (Bloomberg ticker: 562990 CH Equity) was listed on the Shanghai Stock Exchange (SSE). Before market opened, it ranked first among 15 China onshore listed carbon neutral thematic ETFs, with AuM of US$630 million (RMB 4.27 billion).
Previously, there were 7 ETFs with “carbon neutral” in their fund names, tracking indices such as low-carbon and environmental protection, with total AuM of more than US$1 billion. E Fund Carbon Neutral 100 ETF is among the first batch of 8 ETFs tracking the CSI SEEE Carbon Neutral Index initially opened for subscription since July 4. Their total subscriptions reached more than US$1.9 blilion. E Fund Carbon Neutral 100 ETF ranked first with AuM of US$630 million and individual investors held close to 4 billion shares, accounting for 93.49% of the total fund shares.
Investors’ recognition of E Fund Carbon Neutral 100 ETF is a testament to the market’s confidence in carbon-neutral thematic investing. Mr. Yaping Pang, Head of Index Research at E Fund, believes that there are 2 major investment trends: first, there are investment opportunities in advanced low-carbon industries, including clean energy, energy storage, new energy vehicles and carbon reduction & storage technologies; second, for traditionally high carbon emission enterprises, investment opportunities lie with their technological transformations towards green energy, such as “green electricity” for utility companies and carbon reduction transformation for upstream manufacturing enterprises.
E Fund Carbon Neutral 100 ETF tracks the CSI SEEE Carbon Neutral Index. This index covers both the advanced low-carbon industries such as electrical equipment, new energy, utilities, hydro, nuclear powers, as well as companies that have great potential for carbon reductions, such as chemicals, non-ferrous metals, construction materials, iron and steels, which aligns perfectly with the 2 investment trends mentioned above, contributing to China’s carbon neutrality target.
The index component stocks include leading companies that have made significant contributions to carbon neutrality target. As of July 18, the top 10 index constituents account for 43% of the total market value, and the top 5 constituents are Contemporary Amperex Technology, Longi Green Energy Technology, BYD, Yangtze Power, and Zijin Mining Group. The total market value of the 100 index constituents was US$1.48 trillion, 33 of which have market value over US$14.8 billion.
According to Wind data, as of July 18, the CSI SEEE Carbon Neutral Index has cumulatively generated return of 116.68% since the base date on June 30, 2017, with annualized return of 17.05% and annualized Sharpe ratio of 0.79, demonstrating excellent long-term risk-adjusted return.
As a leading comprehensive asset manager in China, E Fund was one of the first to debut ETF business in China and offers a comprehensive ETF product line to investors. As of the end of June 2022, E Fund has 50 non-money market fund ETFs.