NICO: Investing in the Future of Tobacco and Nicotine with Hexis Capital Management
Hexis Capital Management has introduced the Hexis Active Nicotine Engagement ETF (NICO), a unique exchange-traded fund that combines investment in the global tobacco and nicotine sector with an engagement program aimed at promoting the industry's shift towards reduced-risk products. NICO, listed on the New York Stock Exchange, offers investors exposure to the sector while actively working with portfolio companies to drive the adoption of reduced-risk products. The fund, managed by Penserra Capital Management, features a management fee of 0.7% and is distributed by Quasar Distributors, LLC.
The tobacco and nicotine sector is undergoing a significant transformation, with reduced-risk products like tobacco-heating systems and nicotine pouches playing a key role in driving growth and valuation. NICO provides investors with an opportunity to participate in this transition while actively engaging with companies to accelerate it. By leveraging deep sector expertise and a rigorous transition framework, the fund aims to deliver improved investor outcomes and contribute to meaningful progress in harm reduction.
Central to NICO is the Hexis Nicotine Transition Score (HNTS), a proprietary framework that assesses how effectively companies are transitioning from combustible tobacco to reduced-risk categories. The HNTS, based on 27 indicators and 13 sub-indicators, evaluates companies' efforts in areas such as tobacco-heating systems, nicotine pouches, and vaping products. Incorporating AI-supported indicators like patent filings and market sentiment, the HNTS methodology is a key component of the fund's portfolio construction process and engagement program with portfolio companies.
In conclusion, the Hexis Active Nicotine Engagement ETF (NICO) offers investors a unique opportunity to invest in the global tobacco and nicotine sector while actively supporting the industry's transition towards reduced-risk products. With a focus on engagement and a proprietary transition framework, NICO aims to drive positive change in the sector and deliver value to investors seeking exposure to this evolving market.