Touchstone Climate Transition ETF - Blake Moore
What Makes Touchstone’s HEAT ETF Special?
Our new Touchstone Climate Transition Fund, ticker symbol, HEAT. So excited about this launch. It's a pretty simple premise, but it's a disruptive trend that's going to cause a lot of changes in the environment. I’m not talking about the climate environment, the economic environment, how companies act, where they put their money, how they spend their money, research, development, all those things are reasons to invest in companies that are understanding how to take advantage of this macro trend versus companies that aren’t and we found an asset manager that can help identify companies that are going to benefit from this macro trend for a long period of time. So we think this is a really good place for investors to be.
What Types of Companies Will HEAT Include?
So companies will either be solution providers. Some companies will figure out how to provide solutions for the climate change that's happening and help people deal with it. Some companies will evolve themselves to become more sustainable in a warming environment. Think of an insurance company that writes property coverage around the United States. They're going to have a different view on property and casualty coverage near the coast when the storms are getting so much larger, when we have more hurricane issues, when we have larger climate events, companies that evolve in that way are going to take advantage and be more sustainable.
And then finally, there are companies that are going to help people adapt to what's going on in the climate, it gets warmer, people need cooling. Well, that involves all kinds of things. For example, air conditioning components in companies, insulated windows, very climate friendly buildings. All those things require investing and money, and some companies are going to benefit from that. Those are the companies that will go into this fund.
Why Choose Lombard Odier as Sub-Advisor?
How do we pick our asset managers at Touchstone? The starting point has to be they are able to deliver their asset management capabilities in a distinctively active way. If they're like a benchmark, if they're too close to the benchmark, if they're not delivering their portfolio in, with a high conviction, in a high conviction way, then we don't want a portfolio manager that's putting two or three hundred stocks in a fund.
We want their best ideas and those are the things we want in our fund. So we look for managers like that. Lombard Odier is one of those. And this asset manager that we selected, Lombard Odier is a specialist at figuring out companies are going to benefit from all the money that's going to be spent on climate transition in the next decades and firms that will not.
Word About Risk
There are risks associated with investing, including possible loss of principal.
The Adviser engages a sub-adviser to make investment decisions for the Fund’s portfolio; there is no guarantee that the sub-adviser will be successful achieve satisfactory results or identifying profitable companies.
The Fund’s climate transition investment criteria may limit the available investments
or may cause the Fund to forgo opportunities to buy certain securities, or forgo opportunities to gain exposure to certain industries, sectors, regions and countries, which may cause the Fund to underperform funds that invest in a broader array of
investments. In addition, the Fund maybe required to sell a security when it might otherwise be disadvantageous for it to do so.
Touchstone exchange-traded funds (ETFs) are actively managed and do not seek to replicate a specific index. ETFs are bought and sold through an exchange at the then current market price, not net asset value (NAV), and are not individually redeemed
from the fund. Shares may trade at a premium or discount to their NAV when traded on an exchange. Brokerage commissions will reduce returns. There can be no guarantee that an active market for ETFs will develop or be maintained, or that the ETF’s listing will continue or remain unchanged.
Please consider the investment objectives, risks, charges and expenses of the ETF carefully before investing. The prospectus and the summary prospectus contain this and other information about the Fund. To obtain a prospectus or a summary prospectus, contact your financial professional or download and/or request one at TouchstoneInvestments.com/resources or call Touchstone at 833.368.7383. Please read the prospectus and/or summary prospectus carefully before investing.
Touchstone ETFs are distributed by Foreside Fund Services, LLC.*
*A registered broker-dealer and member FINRA
Touchstone is a member of Western & Southern Financial Group
Not FDIC Insured | No Bank Guarantee | May Lose Value
© 2023, Touchstone Securities, Inc.
ETF-3054-HEAT-2304
