HEAT ETF — Holdings & Analysis

The fund's strategy involves investing at least 80% of its net assets in companies involved in this climate transition, differentiating it from broader market ETFs.

Touchstone Climate Transition ETF (HEAT) ETF — Price, Holdings & Analysis

The Touchstone Climate Transition ETF (HEAT) is an equity ETF with $0.01B in assets under management and an expense ratio of 0.69%. Launched in May 2023, HEAT focuses on companies that are expected to benefit from a transitioning climate environment. The fund's strategy involves investing at least 80% of its net assets in companies involved in this climate transition, differentiating it from broader market ETFs.

ETF Overview

The fund invests, under normal market conditions, at least 80% of its net assets (including borrowings for investment purposes) in companies that benefit from a transitioning climate environment. Equity securities generally include common stocks, preferred stocks, depositary receipts such as American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and European Depositary Receipts (“EDRs”), and interests in other investment companies that invest in equity securities.

The Touchstone Climate Transition ETF (HEAT) aims to capitalize on the global shift towards a more sustainable economy by investing in companies poised to benefit from climate transition. The fund invests primarily in equity securities, including common stocks and depositary receipts, selecting companies that are actively involved in or benefiting from this transition. HEAT's portfolio is diversified across various sectors, with a significant emphasis on Technology (25.4%), Industrials (23.9%), and Consumer Cyclical (14.0%). Top holdings include NVIDIA Corp (3.01%), Alphabet Inc Class A (2.51%), and NextEra Energy Inc (2.38%). The fund's focus on climate transition differentiates it from broad market ETFs, targeting companies that are expected to outperform as the world moves towards cleaner energy and sustainable practices. This targeted approach may appeal to investors seeking exposure to the climate transition theme.

Risk Metrics

HEAT's risk profile is influenced by its concentrated investment strategy and sector allocations. The fund's focus on climate transition companies introduces concentration risk, as its performance is heavily reliant on the success of this specific theme. The significant allocation to Technology and Industrials sectors (25.4% and 23.9% respectively) exposes the fund to sector-specific risks and potential volatility. With a beta of 0.00, HEAT's volatility is currently unmeasurable relative to the market, but this may change as the fund matures. The expense ratio of 0.69% can create an expense drag on returns, especially when compared to passively managed broad market ETFs. these may be worth researching factors when evaluating HEAT's risk profile.

Expense Ratio

0.69%

What does HEAT hold?

Holding	Weight
NVIDIA Corp (NVDA)	3.01%
Dreyfus Government Cash Mgmt Instl (DGCXX)	2.64%
Alphabet Inc Class A (GOOGL)	2.51%
NextEra Energy Inc (NEE)	2.38%
Steel Dynamics Inc (STLD)	2.35%
Thermo Fisher Scientific Inc (TMO)	2.29%
First Solar Inc (FSLR)	2.27%
SSE PLC (SSE.L)	2.24%
Amazon.com Inc (AMZN)	2.22%
London Stock Exchange Group PLC (LSEG.L)	2.10%

How Is the Fund Allocated?

Sector	Weight
Technology	25.4%
Industrials	23.9%
Consumer Cyclical	14.0%
Basic Materials	12.6%
Utilities	11.5%
Financial Services	4.2%
Communication Services	2.6%
Healthcare	2.4%
Real Estate	1.6%
Consumer Defensive	1.1%
Energy	0.8%
Cash & Others	0.0%

Country	Weight
Other	100.0%

Dividend Yield

0.00%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio

Touchstone Dynamic International ETF (TDI) (Equity) — 0.65% expense ratio
Touchstone Strategic Income ETF (SIO) (Fixed Income) — 0.50% expense ratio
Touchstone Securitized Income ETF (TSEC) (Fixed Income) — 0.41% expense ratio

Risk Metrics

Beta: 0.00

Questions & Answers

What is HEAT and what does it track?

The 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.

What is the expense ratio for HEAT?

The 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.

What are the top holdings in HEAT?

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%).

Is HEAT a good long-term investment?

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 should consider.

How does HEAT compare to similar ETFs?

The 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.

Does HEAT pay dividends?

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.