Plant-based innovation ETF
ETF newcomer with the appropriate name VegTech has launched an actively managed ETF that invests in companies using plants in innovative ways.
The VegTech Plant-based Innovation & Climate ETF (EATV), which has listed in New York, will invest in global companies of any size that make half their revenue from plant-based innovation.
This includes companies like Beyond Meat and The Tattooed Chef, which use plants to make vegetarian food. It includes companies like Amyris, which use plants to create chemicals that are near-identical to those made through more environmentally destructive processes. And includes companies like e.l.f. Beauty that uses plant materials to make animal-friendly cosmetics.
The fund holds a high conviction portfolio of 35 stocks. The top 10 are below.
The fund charges 0.75%.
|
% of fund |
Company |
Ticker |
|
8.45% |
BEYOND MEAT INC |
BYND |
|
8.35% |
MGP INGREDIENTS INC NEW |
MGPI |
|
7.90% |
AMYRIS INC |
AMRS |
|
6.62% |
E L F BEAUTY INC |
ELF |
|
5.15% |
INGREDION INC |
INGR |
|
4.90% |
OATLY GROUP AB |
OTLY |
|
4.78% |
OLAPLEX HLDGS INC |
OLPX |
|
4.18% |
ANHEUSER BUSCH INBEV SA/NV |
BUD |
|
3.96% |
CELSIUS HLDGS INC |
CELH |
|
3.93% |
NATIONAL BEVERAGE CORP |
FIZZ |
Bernie’s commentary – disparity between private and public markets
Plant-based food and improved farming technology is a promising area that’s seen a lot of investment in private markets. Clearly necessary to meet the challenges of global warming, venture capitalists are swarming all over it. According to Pitchbook, the Morningstar subsidiary that collects data on what VCs are doing, investment in foodtech and agtech is “surging”. And among VCs, foodtech and agtech were two of the most popular niches in 2021. (See here)
It’s interesting then that public markets have had such a milquetoast response. The share prices of Beyond Meat, Tattooed Chef and Oatly – three of the biggest names in plant-based food – have fallen 50% or more the past 12 months. The other two ETFs focussing on this niche, with which today’s listing will compete, have seen basically zero inflows.
|
Ticker |
Fund Name |
MER |
AUM |
Inception |
|
KROP |
Global X AgTech & Food Innovation ETF |
0.50% |
$5.8M |
Jul-21 |
|
YUMY |
VanEck Future of Food ETF |
0.69% |
$2.4M |
Nov-21 |
I’m not sure what the reasons are, but its curious that the public and private markets are judging the promise of this sector so differently. For my part, I think I agree with the private market.
NOTE: looking at burgers at this time in the morning, to get photos for this article has been a terrible start for a monday morning as i am now very hungry.