The enthusiasm for clean living doesn’t stop with Corporate America.
The trend has now impacted the exchange-traded fund market on which Amplify ETFs – the company behind popular themed funds like the one Boost the Seymour Cannabis ETF (CNBS) and the Strengthen the ETF for the exchange of transformation data (BLOK) – has now applied for an ETF focused on clean living.
If the index-based fund is approved, it will be launched later this year under the ticker DTOX, Amplify founder and CEO Christian Magoon told CNBC’s “ETF Edge” in this week.
DTOX will “track buildings and infrastructure, health, beauty, food, hospitality, energy and transportation companies that make products that are either better for the environment or better for the human body,” Magoon said in an interview Monday .
It sounds broad-based, but Amplify has proposed fairly strict rules for its holdings.
“They must have about 80% of their sales in these rooms,” said Magoon.
“It’s really one way of capitalizing on this trend that people want to be cleaner in terms of their footprint, health and environment,” he said. “We believe this is a trend that will continue for a while. We believe that companies that focus on it and get most of their revenue from it have a chance to produce alpha.”
While there are clean energy, health and wellness ETFs, DTOX would be the first to reflect both themes.