Change Finance has rolled out a new ETF called the Change Finance Diversified Impact U.S Large Cap Fossil Fuel Free ETF (NYSE Arca: CHGX) that intends to screen a basket of 100 largest U.S. – listed common stocks against environmental, social and governance standards or ESG.
The firm’s managers are mostly women. Its CEO Donna Morton was formerly the CEO of a clean energy company and built a think tank which helped pass the first carbon tax in North America.
More DetailsMore Details on the ETF
ETFs are the fastest growing asset class in impact investing, according to a May note from Impact Alpha sourced from Morningstar.
Of the 20 sustainable ETFs on the market in May, 17 had launched in the past few years. Together, they represent $4.2 billion in assets.
Change Finance’s CHGX is its first ETF strategy that aims to open a “new chapter in investing,” Morton said in an announcement.
“Our investors want alignment with what they care about, without sacrificing performance. Fossil fuel-free is essential, but CHGX then goes further, divesting not only from companies who dig up, refine, burn and service fossil fuels, but also from companies that are serious polluters, that have significant human or labor rights violations, and that fail to meet a variety of other social and environmental standards. No other ETF does this,” Morton added.
In other words, Morton plans to look at multiple impact areas simultaneously, not just fossil-free, like a firm’s carbon footprint and board diversity.
Methodology
CHGX aims to reflect the performance of the Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free Index, and follow a prescribed process to measure the performance of the large-cap U.S. companies in that portfolio while meeting ESG standards.
CHGX has a 0.75% expense ratio, and as of this writing was trading at just over $18 in MarketWatch.
