The Conversation (0)
Climate Global and Exchange Traded Concepts announced the Climate Global Climate-Resilient REIT Index ETF (Ticker: CLIM), an exchange-traded fund designed to provide exposure to U.S. equity Real Estate Investment Trusts (REITs) while systematically incorporating insurance-grade climate and extreme-weather risk analytics into portfolio construction. CLIM is the first ETF of REITs to directly integrate Moody's physical risk models—based on the same analytical infrastructure global insurers and reinsurers use to price policies and manage capital—into U.S. public equity REIT investing.
"Climate and extreme-weather events are increasing in frequency and severity, impacting industries beyond insurance," said Michael Steel, Head of Insurance Solutions at Moody's. "Moody's is proud to support the use of the insurance industry's leading catastrophe models in new applications, such as ETF and Index of REITs weighted by our climate and extreme-weather risk analytics."
"Real estate is inherently physical," said Moe Khosravy, Partner at Climate Global. "The risks are location-specific and driven in part by both long-term climate trends and acute extreme weather events. For decades, the insurance industry has invested substantial sums in catastrophe modeling to quantify potential economic loss across a broad set of perils including flood, hurricane, wildfire, hail, wind, tornado, heat stress, water stress, sea level rise and more. These models are calibrated to historical claims data and built to estimate loss under forward-looking hazard simulations. CLIM brings that standard of rigor into public markets."
"Insurers have some of the most economic skin in the game when it comes to climate and extreme weather risk," said Travis Deyle, Partner at Climate Global. "These models are used in a complex and multifaceted environment that helps decide how they commit capital, price policies, determine coverage and pay claims. CLIM applies that loss-calibrated, economically grounded framework to U.S. equity REITs—embedding property-level and portfolio-level risk measurement within a transparent, rules-based structure."
About Moody's Corporation
In a world shaped by increasingly interconnected risks, Moody's (NYSE: MCO) provides data, intelligence, and analytical tools to help business and financial leaders make confident decisions. Learn more at www.moodys.com. Moody's provides data and modeling outputs that are one factor used as an input in the Index's climate risk analytics. Moody's does not sponsor, endorse, sell, or promote the Fund.
About Climate Global
Climate Global is an index provider and data analytics company focused on real estate that is resilient to climate and extreme weather risks. Climate Global aims to democratize insights from the data and models used by the global insurance industry to create new financial products, intelligently allocate capital or provide tools to help people make better decisions. Climate Global also serves as the Fund's Sponsor. Learn more about Climate Global at www.climateglobal.com.
About Exchange Traded Concepts (ETC)
Exchange Traded Concepts is an SEC-registered independent investment adviser that specializes in white-label ETFs and offers comprehensive ETF services spanning ETF-in-a-Box, ETF portfolio management, fund marketing and consulting. ETC's comprehensive platform delivers a true turnkey solution for investment advisors, financial professionals, and others to manage their assets and offer their strategy in an ETF wrapper to meet investor needs. Learn more at www.exchangetradedconcepts.com.
Important information
Carefully consider the funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's Prospectus and Summary Prospectus, which may be obtained by visiting www.climateglobaletf.com Read the Prospectus and Summary Prospectus carefully before investing.
The fund is distributed by Foreside Fund Services, LLC. Exchange Traded Concepts, LLC serves as the investment advisor. Foreside is not affiliated with Moody's, Climate Global, Exchange Traded Concepts, LLC, or any of its affiliates.
Investing involves risk, including the loss of principal.
Passive Management: The fund is passively managed and attempts to mirror the composition and performance of the Climate Global – Climate-Resilient REIT Index. The Fund's returns may not match due to expenses incurred by the Fund or lack of precise correlation with the index.
Non-Diversification: The Fund may have more risk because it is "non-diversified", meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive on the Fund's net asset value.
Real Estate Sector Risk: Through its investments in REITs, the Fund is subject to the risks of investing in the real estate market, including decreases in property revenues, increases in interest rates, increases in property taxes and operating expenses, legal and regulatory changes, a lack of credit or capital, defaults by borrowers or tenants, environmental problems, and natural disasters. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses.
New Fund Risk: The Fund is a recently organized, giving prospective investors a limited track record on which to base their investment decision. The Climate Global - Climate-Resilient REIT Index (CLIMX) identifies, and tracks U.S. publicly listed Real Estate Investment Trusts (REITs) that demonstrate greater resilience to climate-related physical risks and extreme weather events. The index is not directly investable.
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SOURCE Climate Global
