Two new funds to invest in the next big disruptive industries
Food and education are two sectors ripe for disruption – and two new ETFs offer the chance to invest.


You don’t have to be a vegan to think that if we are to feed as many as nine billion people with high protein foods in the next few decades, then we might need some alternatives to traditional meat products. There will always be a market for high quality, intelligently-farmed natural meat products, but they are likely to be more expensive. The good news is that new food technologies are emerging and becoming profitable. Not all of the new products are perfect, but they are more “sustainable”.
Two disruptive sectors
Food is just one sector where the next “disruptive” technologies are already building momentum. I suspect another opportunity lies in next-generation educational technology (or “edtech”). Even before the Covid-19 outbreak, many were questioning the value of traditional educational delivery, and while online education hasn’t quite taken off to the extent everyone expected it to, change is afoot, especially in Asia.
These big trends are the focus of two new exchange-traded funds (ETFs) from UK-based issuer Rize. Both Rize Sustainable Future of Food UCITS ETF (LSE: FOOD) and Rize Education Tech and Digital Learning UCITS ETF (LSE: LERN) launched a few weeks ago. To compile the indices, Rize commissioned specialist researchers in each field to build a filtered shortlist of firms that meet various criteria. In the case of food – which is themed around a sustainable, “circular” economy – it’s US-based group Tematica Research. For edtech, it’s Australian firm HolonIQ, which describes itself as “the leading global education market intelligence firm in the world”. The themed indices are then operated by specialist index provider Foxberry.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
More than burgers
I suspect FOOD will prove more popular in the short term, not least because its largest holding (though less than 4% of the index) is plant-based burger company Beyond Meat. The ETF’s definition of food disruption is deliberately broad – there are about 160 stocks in the universe, with sub-categories including agriscience, digital and precision farming, organic and plant-based proteins, plus food and ingredient testing. For my money the most interesting prospects lie in aquaculture and precision-based farming. Urban farms are sprouting up everywhere – the fresh salad outputs of these industrial farms are expensive, but the circular technology used to produce them is hugely efficient. The ETF also includes established, highly-profitable businesses in the food flavouring market, many of which are trying to find chemicals to mimic “natural” flavourings. Sustainable packaging is also a big component. Notably, the index is weighted using a sustainability score, rather than market value.
The LERN ETF, focusing on digital and lifelong learning technologies will be a slower burn I suspect. However, it has a cohort of very profitable businesses. The edtech market is now exploding in size and HolonIQ reckons there’s more growth ahead as automation forces huge numbers of people to re-skill. That said, the K12 market – schools to you and me – is still the biggest sub-sector of this market. Related businesses include Chegg, which runs direct-to student online learning support, homework help and tutoring services; 2U, which partners with universities to build, deliver, and support online degree programmes; and, IDP Education, an international education platform and English language test provider. Chinese stocks represent 35% of the index exposure, which speaks volumes as to where the growth potential lies.
Both ETFs have a growth stock, mid-to-smaller cap bias which could make them very volatile. But if you’re looking for a left-field basket of tomorrow’s tech, they could be useful.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

David Stevenson has been writing the Financial Times Adventurous Investor column for nearly 15 years and is also a regular columnist for Citywire. He writes his own widely read Adventurous Investor SubStack newsletter at davidstevenson.substack.com
David has also had a successful career as a media entrepreneur setting up the big European fintech news and event outfit www.altfi.com as well as www.etfstream.com in the asset management space.
Before that, he was a founding partner in the Rocket Science Group, a successful corporate comms business.
David has also written a number of books on investing, funds, ETFs, and stock picking and is currently a non-executive director on a number of stockmarket-listed funds including Gresham House Energy Storage and the Aurora Investment Trust.
In what remains of his spare time he is a presiding justice on the Southampton magistrates bench.
-
City watchdog warning: wealthy savers hold too much cash
Damning FCA reports finds wealthy savers are holding £10,000 or more in cash, but should invest instead or risk stagnated returns.
-
Inheritance tax could be due on the average property in just 10 years
Rising house prices and frozen tax thresholds could mean inheritance tax is payable on the average home from 2035
-
Greg Abel: Warren Buffett’s heir takes the throne
Greg Abel is considered a safe pair of hands as he takes centre stage at Berkshire Hathaway. But he arrives after one of the hardest acts to follow in investment history, Warren Buffett. Can he thrive?
-
Who will be the next Warren Buffett?
Opinion There won’t be another Warren Buffett. Times have changed, and the opportunities are no longer there, says Matthew Lynn.
-
Will Comstock crash – or soar?
Opinion The upside for Comstock, a solar panel-recycling and biomass-refining group, dwarfs the downside, says Dominic Frisby.
-
Can new management turn RIT Capital around?
After several years of poor performance, there is growing evidence that RIT has turned the corner, says Max King
-
'As AGMs go digital, firms must offer a new form of scrutiny for shareholders'
Opinion Technology has rendered big AGM meet-ups obsolete, but the board still needs to be held to account, says Matthew Lynn
-
Unilever braces for inflation amid tariff uncertainty – what does it mean for investors?
Consumer-goods giant Unilever has made steady progress simplifying its operations. Will tariffs now cause turbulence?
-
Two ways to tap into monopoly profits from airports
Most investors can’t get their hands on airports. Here are two ways you can
-
Fat profits: should you invest in weight-loss drugs?
The latest weight-loss treatments could transform public health and the world economy. Should you invest?