#United States #New York #Hexis Capital #Nicotine ETF #Reduced-Risk Products

Hexis Capital Management Launches Active Nicotine Engagement ETF

In a groundbreaking move for the investment community, Hexis Capital Management has unveiled the Hexis Active Nicotine Engagement ETF (ticker symbol: NYSE: NICO), marking a pivotal shift in how investors can engage with the tobacco and nicotine sector. Introduced on May 6, 2026, this actively managed exchange-traded fund opens doors for investors who want a stake in the evolving landscape of tobacco while promoting a transition toward reduced-risk products (RRPs).

The fund aims to align investor interests with public health objectives by actively engaging with the companies in its portfolio, particularly those involved in producing alternatives to traditional tobacco products. This not only allows investors to participate in the growth of RRPs, like tobacco-heating devices and nicotine pouches, but also encourages companies to enhance their transition strategies. Pieter Vorster, the founder and CEO of Hexis Capital Management, emphasized this point during the fund's launch: "For too long, many investors who care about public health have felt forced to exclude the nicotine sector entirely, but with the industry's ongoing transition, there's a significant opportunity for positive change."

Understanding the Fund's Core Approach

The Hexis Nicotine Transition Score (HNTS) serves as a cornerstone for the fund. This proprietary scoring framework evaluates each company’s efficacy in shifting away from combustible tobacco products. Measuring an impressive 27 indicators, including criteria supported by artificial intelligence (AI) such as patent filings and market sentiment, the HNTS framework provides a comprehensive method for judging investment viability. With approximately 20% of its score derived from AI-backed indicators, the fund promises a modernized research methodology that aligns with the rapid technological advancements in the sector.

To further ensure objective oversight of its investment practices, the fund's engagement program is steered by industry veterans, including Tim Youmans, an expert in corporate governance and investor stewardship. An independent Harm Reduction Stewardship Council (HRSC), chaired by Dr. Derek Yach, offers additional governance. Dr. Yach notably played an instrumental role in developing the World Health Organization's Framework Convention on Tobacco Control, shedding light on the seriousness and credibility of the fund's mission.

Engaging for Change

Jonathan Fell, Hexis Capital Management's Head of Research and Engagement, articulated the company's committed vision: "Real change in this industry will come from sustained, evidence-based engagement with key players. Our role is not just to invest but to facilitate a constructive dialogue aimed at improving public health outcomes on behalf of our investors."

The fund intends to pay quarterly dividends from net investment income while distributing any net realized capital gains annually. All distributions will be executed in cash, providing investors with both stable returns and the opportunity to support industry advancements.

About Hexis Capital Management

Hexis Capital Management stands as a specialized investment advisory firm focusing on the global tobacco and nicotine market. With a leadership team boasting over 60 years of combined experience in tobacco and consumer research, the firm is well-positioned to navigate the intricacies of this industry while steering toward sustainable investment strategies.

For more information about the fund and to access investment resources, visit hexis.capital.

It's essential for prospective investors to consider their investment objectives, risks, charges, and expenses carefully before investing in the NICO fund. The fund's focused nature on the tobacco and nicotine sectors adds an additional level of risk that investors must evaluate. Ultimately, the launch of the Hexis Active Nicotine Engagement ETF represents a significant step towards integrating health considerations into tobacco investment practices, inviting a new era of responsible investing.