HEAT ETF — Holdings & Analysis

Touchstone Climate Transition ETF (HEAT) is an actively managed fund that focuses on investing in companies expected to benefit from a transitioning climate environment. The fund aims to achieve its investment objective by investing, under normal market conditions, at least 80% of its net assets in companies involved in this climate transition. This includes companies across various sectors, such as Technology, Industrials, and Utilities, that are developing or implementing solutions to address climate change. The ETF provides investors with targeted exposure to the climate transition theme, differentiating it from broader market ETFs.

Touchstone Climate Transition ETF (HEAT) has an expense ratio of 0.69%. This means that for every $10,000 invested in the fund, investors will pay $69 in annual fees to cover the fund's operating expenses. While this expense ratio is higher than some passively managed ETFs that track broad market indexes, it is important to consider that HEAT is an actively managed fund, which typically have higher expense ratios due to the costs associated with research and stock selection. The category average expense ratio for equity ETFs is approximately 0.44%.

As of 2026-03-15, the top holdings in the Touchstone Climate Transition ETF (HEAT) include NVIDIA Corp (3.01%), Dreyfus Government Cash Mgmt Instl (2.64%), and Alphabet Inc Class A (2.51%). Other significant holdings include NextEra Energy Inc (2.38%) and Steel Dynamics Inc (2.35%). These holdings reflect the fund's focus on companies that are expected to benefit from a transitioning climate environment, with exposure to technology, energy, and basic materials sectors. The fund's top holdings may change over time as the portfolio manager adjusts the portfolio based on market conditions and investment opportunities.

Whether the Touchstone Climate Transition ETF (HEAT) is a suitable long-term investment depends on an individual's investment goals, risk tolerance, and time horizon. The fund's focus on climate transition companies offers potential for long-term growth as the world shifts towards a more sustainable economy. However, the fund's concentrated investment strategy and sector allocations introduce specific risks that investors may want to research. With an expense ratio of 0.69% and a dividend yield of 0.00%, investors should weigh the costs and potential returns against their investment objectives. Past performance does not guarantee future results.

Touchstone Climate Transition ETF (HEAT) differentiates itself through its specific focus on companies benefiting from climate transition. Compared to broader ESG or clean energy ETFs, HEAT offers a more targeted approach. The fund's expense ratio of 0.69% is higher than some passively managed ETFs, but it is important to consider that HEAT is actively managed. With AUM of $0.01B, HEAT is relatively small compared to some of the larger ETFs in the ESG and clean energy space, which may impact its liquidity and trading volume. Investors should compare HEAT's strategy, holdings, and performance against other ETFs in the category to determine which fund best aligns with their investment objectives.

As of 2026-03-15, the Touchstone Climate Transition ETF (HEAT) has a dividend yield of 0.00%. This indicates that the fund currently does not distribute any dividends to its shareholders. Investors seeking income from their investments may want to consider other ETFs with a higher dividend yield. However, it is important to note that dividend yields can fluctuate over time and are not guaranteed.