Analysis

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About Harbor Energy Transition Strategy ETF

RENW provides exposure to futures contracts on physical commodities associated with the transition to less carbon-intensive energy sources, such as natural gas, ethanol, wind, and solar power. To be included in the index the commodity must serve one of three purposes: building energy infrastructure (such as copper, aluminum, nickel and silver), being bridge fuel or fuels that are less carbon intensive and assist in the transition to net-zero carbon (ethanal and natural gas), or incentivizing investment in the new energy infrastructure (carbon credits). The index provider utilizes a quantitative process that combines economic impact criteria and trading liquidity to select and weight specific commodity contracts. Minimum and maximum sector weights are applied for diversification. The index is reconstituted monthly. Investors assume counterparty risk but avoid receiving K-1 tax forms since the fund gains its exposure using a Cayman Island subsidiary and excess return swaps.