Calculated and distributed by Morningstar Indexes, the new index aims to lead and define a new global investment category.
According to VegTech, the index also serves as a benchmark for the emerging plant-based and alt-protein sector. It focuses on large, mid-, and small-cap companies that produce, among other innovations, consumer packaged goods, ingredients, biotechnology, and agtech using plant-derived or animal-free technologies. By offering these companies increased exposure, the index aims to attract greater investment toward a more eco-friendly, efficient and cruelty-free food supply chain.
“An underweighted sector”
Before listing its calculated index, VegTech first introduced a non-weighted tracking index, The Global Vegan Impact and Innovation Index™ last year, which likewise sought to highlight the market potential of plant-based innovation to ESG (Environmental, Social and Corporate Governance) investors.
“VegTech Plant-based Innovation & Alternative Proteins Index represents an underweighted sector of the capital markets that has experienced surprisingly high revenue growth over the last several years,” says Dr. Sasha Goodman, Index Classification Committee member and EATV Fund Manager. “Few in the financial world are taking note of the long-term impact of this sector.”
The index is VegTech’s second financial product, following the debut of its ETF (EATV), which launched on December 28, 2021. Comprising a global fund of 40 publicly traded plant-based companies, its top holdings include Amyris (NASDAQ: AMRS), Oatly (NASDAQ: OTLY), Beyond Meat (NASDAQ: BYND), E.L.F. Beauty (NYSE: ELF), Ingredion (NYSE: INGR), and Vita Coco (NASDAQ: COCO).
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“We are proud to be the first to market with a non-tracking, active ETF (EATV) and an industry benchmark index (EATVI) that are laser-focused on plant-based innovation and alternative proteins, including fermented proteins and cultivated meat. These advancements are shifting our food and materials supply systems to be animal-free and sustainable. It’s now or never,” says Elysabeth Alfano.
The new index will be listed on Morningstar, Bloomberg and other outlets. Those interested in licensing the index can contact [email protected].