On Wednesday, Duff & Phelps Investment Management Co. and Virtus ETF Solutions, both affiliates of Virtus Investment Partners, Inc. (VRTS), announced the introduction of the Virtus Duff & Phelps Clean Energy ETF (NYSE: VCLN), the first ETF strategy managed by Duff & Phelps.
The Virtus Duff & Phelps Clean Energy ETF seeks attractive total returns by investing globally in a portfolio of clean, renewable, and sustainable companies and technologies that will power future energy needs. Actively managed, VCLN focuses on well-positioned market leaders at the forefront of clean energy innovation and commercialization.
“As society moves towards a more sustainable future, the energy and power sectors are beginning a major shift, and VCLN can help investors benefit from this long-term capital replacement cycle,” said David Grumhaus, Jr., President and Chief Investment Officer of Duff & Phelps. “Our history, disciplined investment approach, exceptional depth of resources, and expertise in utilities and energy investing gives us a specialized perspective and understanding of this changing sector.”
According to Grumhaus, VCLN’s investment process contrasts favorably with passive clean energy indexes’ less-defined investment processes, which is often driven by market capitalization and clean energy exposure scores derived from static, sometimes opaque, criteria. By contrast, the Duff & Phelps active investment management approach is more comprehensive than those of its passive competitors, resulting in a high-conviction stock portfolio with a more balanced risk profile.
“Duff & Phelps’ rigorous investment process around energy infrastructure and clean energy makes VCLN a compelling, thematic equity strategy for the Virtus ETF suite,” said William Smalley, executive managing director of Virtus ETF Solutions. “We believe strong, active management, unconstrained by backward-looking and arbitrary rules, is an implementation style well suited to capture the dynamism of an exciting, emerging investment theme such as clean energy.”
“We look forward to delivering our investment expertise through our first ETF,” added Grumhaus. “Partnering with Virtus ETF Solutions provides the platform for investors to universally access our time-tested and experienced investment capabilities through an efficient, transparent vehicle.”
Duff & Phelps managed $11.4 billion of assets as of June 30, 2021, and offers various specialized investment strategies with exceptional depth of resources and expertise to institutional and individual investors.