DALLAS, Aug. 14, 2019 /PRNewswire/ — TriLine Index Solutions, the index and ETF development arm of Boone Pickens Capital Fund Advisors, announces the launch of a new renewable energy ETF via the change of the NYSE® Pickens Oil Response™ ETF (NYSE: BOON) to the Pickens Morningstar® Renewable Energy Response™ ETF (NYSE: RENW). For more information click here. RENW will seek to track the Morningstar® North America Renewable Energy IndexSM, which is administered and calculated by Morningstar, Inc.’s index group to provide exposure to companies that operate across the full renewable energy supply chain, including renewable energy innovators, suppliers, adopters, and end users.
The index is composed of two distinct constituent groups. The first constitutes 75% of the total index weight and consists of companies with meaningful revenue from renewable energy production or participation in businesses that rely on renewable energy, such as green transportation. The second group constitutes 25% of the total index weight and includes companies that are leaders in meeting their primary energy requirements from renewables. Renewable energy revenue and renewable energy usage are determined by data from Sustainalytics, a leading provider of global environmental, social and governance (ESG) research and ratings.
Toby Loftin, Managing Member of BP Capital Fund Advisors and Founder of TriLine Index Solutions, said: “We are pleased to work with Morningstar’s index team in connection with an ETF in the spirit of the Pickens Plan, which we believe gives investors more balanced exposure to renewable energy. The Pickens Morningstar® Renewable Energy Response ETF (RENW) includes not only renewable energy producers and green transportation companies, but also companies that are increasingly meeting their primary energy needs with renewable energy—which we believe is a better representation of the fundamentals of the renewable energy value chain.”
Mr. Loftin added: “Instead of investing in more narrowly-focused renewable energy funds, investors should take a more holistic approach, with the aim of achieving higher risk-adjusted returns across a more diversified base of companies. For more than a decade, Boone has been an advocate of the importance of renewable energy’s role in an energy plan for America. We believe renewable energy demand will grow dramatically in the years ahead, and RENW is a better way to invest in the theme.”
Sanjay Arya, head of Indexes at Morningstar, said: “The shift toward renewable energy growth is here to stay, and the proportion of investors sensitive to environmental concerns continues to increase around the globe. With strong encouragement from governments, renewable energy represents an area of tremendous innovation. The Morningstar North America Renewable Energy Index that underlies this ETF stays true to the broader secular trend toward increased renewable energy adoption, while the index construction provides a more inclusionary view of the theme.”
For more information on RENW please contact Toby Loftin at 214.615.3822 or visit http://www.renewableenergyetf.com/.
TriLine Index Solutions, LLC
About TriLine Index Solutions:
TriLine Index Solutions was founded as a natural evolution of the BP Capital TwinLine Funds’ holistic approach to energy investing, as well as a response to the historic meta-shifts currently occurring throughout the global energy landscape. The dynamics of the energy value chain are shifting in the US requiring a redefinition of “energy investing.” The index solutions TriLine develops reflect the current reality of innovation in energy production and changing global demand themes, and are focused on differentiated energy indices for passively-managed products.
About Morningstar Indexes:
Morningstar® Indexes combine the science and art of indexing to give investors a clearer view into the world’s financial markets. Our indexes are based on transparent, rules-based methodologies that are thoroughly back-tested and supported by original research. Covering all major asset classes, our indexes originate from the Morningstar Investment Research Ecosystem—our network of accomplished analysts and researchers working to interpret and improve the investment landscape. Clients such as exchange traded fund providers and other asset management firms work with our team of experts to create distinct, investor-focused products based on our indexes. Morningstar Indexes also serve as a precise benchmarking resource.
The Morningstar® North America Renewable Energy IndexSM was created and is maintained by Morningstar, Inc. Morningstar, Inc. does not sponsor, endorse, issue, sell, or promote the Pickens Morningstar Renewable Energy Response ETF and bears no liability with respect to that ETF or any security. Morningstar® is a registered trademark of Morningstar, Inc. Morningstar® North America Renewable Energy IndexSM is a service mark of Morningstar, Inc.
Principal Investment Risks: You can lose money on your investment in the Fund. The Fund is a recently organized, non-diversified management investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. Securities held by the Fund may be affected by fluctuations in the prices of energy commodities (particularly oil) and will be especially sensitive to developments that significantly affect certain related sectors of the economy, particularly the Energy, Industrial and Materials sectors. The Fund’s investments will be concentrated in an industry or group of industries and the value of Shares may rise and fall more than the value of shares that invest securities of companies in a broader range of industries. The equity securities, including those of mid-capitalization companies, held in the Fund’s portfolio may experience sudden, unpredictable drops in value or long periods of decline in value. The Fund is non-diversified, which could cause the Fund to fluctuate in value more than an investment in a diversified fund. The Fund is not actively managed, and the Fund’s sub-adviser would only sell shares of an equity security if that security is removed from the Index or the removal of that security is otherwise required upon a reconstitution of the Index in accordance with the Index methodology.
ETF shares are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
The Fund invests in foreign and emerging market securities which involves certain risks such as currency volatility, political and social instability and reduced market liquidity.
For more information about the risks of investing in the Fund, see the section in the Fund’s Prospectus titled “Principal Investment Risks.”
BEFORE INVESTING YOU SHOULD CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. THIS AND OTHER INFORMATION IS IN THE PROSPECTUS, A COPY OF WHICH MAY BE OBTAINED FROM (214) 615-3828. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST.
Foreside Fund Services, LLC – Distributor, not affiliated with TriLine Index Solutions, LLC.
SOURCE BP Capital Fund Advisors