A new exchange traded fund seeks to provide an easy way to invest in the raw materials needed to power the transition to cleaner energy. The Harbor Energy Transition Strategy ETF
RENW,
-1.56%,
which was listed July 14, will track the performance of the Quantix Energy Transition Index, whose three main commodity categories are metals used in new-energy infrastructure construction, such as copper, aluminum and silver; lower-carbon-intensive assets such as natural gas that act as a bridge toward a net-zero future; and carbon credits designed to incentivize investment in clean energy.
The ETF, which is managed by a team of former Goldman Sachs commodities professionals at Quantix Commodities LP, invests in commodities futures, differentiating it from similar funds, which mostly own equities. Don Casturo, founding partner and chief investment officer at Quantix, says the industrial commodities needed to build the necessary infrastructure are well-known. However, given where the world is in the energy transition, companies are still competing to be the dominant technology at the center of the transition, “which makes it difficult to pick the right mix of companies to invest in.” Instead, he says, “direct investment in commodities will help facilitate the transiti …