First ETF Focused on Exposure to Circular Economy
NEW YORK—January 14, 2021— Direxion announced today the recent launch of the Direxion World Without Waste ETF (Ticker: WWOW). WWOW invests in 50 companies at the forefront of the move to a circular economy from a linear one. Until recently, the ‘take-make-consume-waste’ of resources within a linear economy has prevailed. Raw material transformed into a product, and after its utility was over, its lifecycle ended and it became waste. Alternatively, the regenerative framework provided by a circular economy affords companies the ability to address environmental and sustainability priorities, drive innovation, and push for competitiveness, while generating growth.
“Investors have embraced ETFs with exposure to renewable and alternative sources of energy, but a circular economy encapsulates a far broader range of companies,” said David Mazza, Managing Director at Direxion. “WWOW is the first US-listed fund providing direct exposure to companies helping to make a world without waste.”
WWOW seeks investment results, before fees and expenses, which track the Indxx US Circular Economy Index. The Indxx US Circular Economy Index tracks the performance of 50 US-listed companies that are representative of the transformative shift from the linear model of economy to a circular one. The index includes five sub-themes central to the circular economy, providing investors access to the shifting paradigm in growing segments such as biofuels, solar power, and waste management, along with collaboration and content sharing platforms. The top 10 companies from each sub-theme, by largest total market capitalization, will form the final index.
The five sub-themes are:
Sustainability of Resources: Provide renewable energy – bio-based or fully recyclable input material – to replace single-lifecycle inputs.
Resource Recovery: Recover useful resources and energy from disposed products or byproducts.
Life Cycle Extension: Extend the working lifecycle of products and components by repairing, upgrading and reselling.
Sharing Platforms: Enable the increased utilization rate of products through shared access, ownership and use.
Product as a Service: Offer product access, and retain ownership, to internalize the benefits of circular resource productivity.
The top holdings in the Indxx US Circular Economy Index represent large, mid, and small cap firms across a mix of unique sub-industries representative of a world without waste. Many of the holdings focus on the Information Technology sector, with further exposure to the Communication Services, Consumer Discretionary and Industrials sectors.
|Ticker||Name||Circular Economy Sub-theme||Total Market Cap ($M)||Weight (%)|
|JMIA||Jumia Technologies AG||Life Cycle Extension||$3,593.21||8.39%|
|ENPH||Enphase Energy Inc||Sustainability of Resources||$22,167.58||6.94%|
|TSLA||Tesla Inc||Sustainability of Resources||$668,905.11||6.76%|
|ETSY||Etsy Inc||Life Cycle Extension||$22,432.84||4.55%|
|SNAP||Snap Inc||Sharing Platforms||$74,603.33||3.40%|
|MELI||MercadoLibre Inc||Life Cycle Extension||$83,386.78||3.15%|
|SHOP||Shopify Inc||Sharing Platforms||$138,093.33||3.03%|
|SPOT||Spotify Technology SA||Sharing Platforms||$59,655.18||2.78%|
|FSLR||First Solar Inc||Sustainability of Resources||$10,483.16||2.49%|
|OKTA||Okta Inc||Product as a Service||$32,918.05||2.48%|
Source: Source: Bloomberg Finance, L.P., Indxx, as of 12.31.2020.
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