Key Highlights

  • Betashares Climate Change Innovation ETF (ASX:ERTH) provides exposure to global companies involved in climate change solutions and environmental technologies.
  • The fund aims to track the Solactive Climate Change and Environmental Opportunities Index before fees and expenses.
  • ERTH invests across industries including renewable energy, industrial technology, resource efficiency, and sustainable transportation.
  • The ETF offers access to a portfolio of companies focused on addressing environmental challenges through innovation.

Betashares Climate Change Innovation ETF (ASX:ERTH) is an exchange-traded fund designed to provide exposure to companies developing technologies and solutions related to climate change and environmental challenges. The fund focuses on businesses involved in areas such as clean energy, resource efficiency, sustainable transport, and environmental management.

The ETF was admitted to the Australian Securities Exchange in March 2021 and operates within the global large growth equity category. Its investment objective is to provide returns that aim to track the performance of the Solactive Climate Change and Environmental Opportunities Index before accounting for fees and expenses.

Rather than focusing on a single industry, ERTH invests across multiple sectors where companies are developing products and services designed to support the transition toward a lower-carbon economy.

Climate Innovation Investment Theme

Climate change innovation has become a growing area of focus within global financial markets as businesses and governments seek technologies that can improve energy efficiency, reduce emissions, and support sustainable development.

Companies involved in renewable energy, electric mobility, waste management, industrial efficiency, and environmental technologies form part of this investment theme. These businesses operate across different industries but share a connection through their involvement in solutions aimed at addressing environmental challenges.

ERTH provides exposure to this broader theme by investing in companies that contribute to climate-related innovation rather than limiting the portfolio to a single clean energy segment.

Investment Strategy and Index Approach

The ETF follows an index-based strategy designed to identify companies positioned within the climate change and environmental opportunities sector. The underlying index focuses on businesses that generate exposure to technologies and services linked to environmental solutions.

The fund invests in listed companies across global markets and selects businesses based on their involvement in areas connected to climate innovation. This approach allows investors to access a diversified portfolio of companies participating in different parts of the sustainability economy.

By using an index methodology, ERTH provides a structured approach to gaining exposure to companies aligned with environmental technology themes.

Portfolio Composition and Global Exposure

ERTH maintains a global portfolio with exposure across multiple regions, including the United States, Switzerland, South Korea, the Netherlands, France, China, Canada, and Japan.

The fund’s sector allocation reflects the broad nature of climate-related industries. Industrial companies represent a significant portion of the portfolio, while technology, consumer cyclical, basic materials, and utilities businesses also contribute to the fund’s exposure.

This multi-sector structure reflects the interconnected nature of climate solutions, where progress can involve manufacturing, software development, energy systems, transportation, and resource management.

Major Holdings and Industry Representation

The ETF includes companies operating across different areas of climate innovation. Key holdings include Vertiv Holdings, Bloom Energy, ABB, ASML Holding, Carrier Global, Tesla, Waste Management, Ecolab, BYD, and Synopsys.

These companies represent various parts of the environmental technology landscape. Some are involved in energy solutions and industrial systems, while others contribute through electric vehicles, waste management, semiconductor technology, or efficiency-focused products.

The combination of different businesses allows ERTH to capture exposure to multiple approaches toward environmental innovation.

Role of Sustainable ETFs in Investment Markets

Sustainable ETFs have become a way for investors to access companies associated with long-term environmental trends through a diversified market product. These funds allow exposure to businesses involved in sustainability themes without requiring investment selection across individual companies.

Climate-focused ETFs are influenced by several factors, including technology development, government policies, industrial adoption of sustainable solutions, and changes in corporate investment priorities.

As industries continue to evaluate energy use, emissions reduction, and resource efficiency, companies providing related technologies and services remain part of the broader sustainability investment landscape.

Fund Structure and Management

Betashares Climate Change Innovation ETF operates with a management fee of 0.65% and provides access to a portfolio of global companies through an ASX-listed structure.

The fund is designed for investors seeking exposure to businesses involved in environmental innovation and climate-related opportunities. Understanding the companies included within the portfolio and their connection to climate solutions is an important part of assessing the characteristics of the ETF.

Conclusion

Betashares Climate Change Innovation ETF (ASX:ERTH) provides exposure to global companies involved in developing technologies and solutions related to climate change and environmental challenges. Through its diversified approach across industries and regions, the ETF reflects the growing role of innovation in areas such as renewable energy, sustainable transport, industrial efficiency, and resource management. The fund’s future relevance will depend on continued development and adoption of technologies supporting environmental transformation worldwide.