A new ETF could be the answer for clients demanding some exposure to plant-based meat substitutes that are all the buzz of late. Defiance ETFs launched its Defiance Next Gen Food and Agriculture ETF, which is registered on the NYSE as DIET and tracks the BlueStar Food and Agriculture Sustainability Index. It has an expense ratio of 0.30% according to a statement from Defiance.
Among the holdings of DIET is the popular Beyond Meat, Inc. (BYND) as well as Hain Celestial Group Inc. (HAIN), which is also doing a lot in the plant-based protein category.
“Our fund is focused on the companies that are leading the way in food innovation, sustainability and ultimately how it is produced,” Paul Dellaquila, President of Defiance ETFs, write in an email to WealthManagement.com.
Dellaquila pointed out that seeking innovative and sustainability-focused companies is one of the reasons the fund has firms like MOWI ASA, which is a Norwegian salmon farm that is recognized as one of the most sustainable protein producers in the world (and also DIET’s single largest holding at 5.40%).
The ETF also contains a lot of big agriculture brands too, including Deere & Company, Tyson Foods Inc. and Hormel Foods Corp. Beyond Meat’s big rival, Impossible Foods Inc. (which is behind Burger King’s Impossible Whopper) remains privately held so you will not find it amongst the holdings.
Defiance has launched other ETFs on the bleeding edge, including FIVG, the “first 5G ETF”; and QTUM, which contains holdings in the quantum computing and machine learning space.