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Change Finance Launches Impact Investing ETF: Portfolio Products

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Change Finance, a majority women-run asset manager, announced the launch of its first exchange-traded fund.

The Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free ETF (CHGX) uses diversified impact screens to take a comprehensive approach to socially responsible investing. CHGX’s methodology is informed by the United Nations Sustainable Development Goals.

According to Donna Morton, Change Finance CEO, “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.”

CHGX will also reject companies that produce pesticides or military weapons, engage in corrupt business practices or have exploitative relationships with labor and indigenous people, according to Change Finance.

CHGX’s index begins with the 1,000 largest U.S.-listed companies and applies a series of ESG screens to exclude companies that are deemed to be “bad actors,” whether they operate in the oil, gas, coal, or tobacco industries among others, or have engaged in what the firm considers business malpractice. The fund has an expense ratio of 0.75%, and intends to spur changes in companies through shareholder advocacy.

CHGX will track the performance of the Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free Index.

ImpactUs Marketplace Welcomes Two New Issuers

ImpactUs announced two new issuers to its impact investing platform ImpactUs Marketplace: Low Income Investment Fund (LIIF) and Meow Wolf.

LIIF is a national community capital organization that has invested more than $2 billion to build “healthy, vibrant communities” and create pathways of opportunity for more than 2 million low-income people.

LIIF is the first Community Development Financial Institution on the platform available to non-accredited investors.   

Meow Wolf is an arts and entertainment company that creates immersive, interactive experiences. This certified B Corp transformed community spaces with 400,000 visits in the last 12 months at its Santa Fe, New Mexico location. The company also provides living wages to artists, advancing the arts and creative economy.

Meow Wolf is ImpactUs’ first early-stage venture and first issuer that brings a creativity lens to impact investing through the ImpactUs Marketplace.

Some of these issuers’ offerings are only available to accredited investors because private investments require high risk tolerance, low liquidity concerns and long-term commitments.

Incapital and Capital Impact Launch Fixed Income Notes

Incapital LLC and Capital Impact Partners announced the launch of an offering of up to $100 million of AA-rated fixed-income Capital Impact Investment Notes that allow retail and institutional investors the opportunity to invest in efforts to create social impact for underserved communities.

Individuals can purchase the fixed-income security for as low as $1,000. Funds generated through the note will be used by Capital Impact to further its 30-year efforts to increase access to critical social services including health care, education, affordable housing and community development efforts in low-income urban and rural communities nationwide.

Northern Trust Asset Management Launches New ESG Fund

Northern Trust Asset Management launched the Northern Funds U.S. Quality ESG Fund (NUESX), which is designed to invest in companies that have favorable environmental, social and governance (ESG) characteristics. 

The U.S. Quality ESG Fund takes a quantitative approach to investing by taking into account financial quality metrics and favorable ESG characteristics.

The investment objective of the Northern Funds U.S. Quality ESG Fund is to achieve long-term capital appreciation by investing in equity securities of U.S. large- and mid-capitalization companies. Using a proprietary quantitative factor-based approach, the fund’s investment strategy seeks to invest in companies that meet certain criteria for ESG sustainability and exhibit strong business fundamentals, solid management and reliable cash flows.

The investment model looks to exclude companies that are in violation of certain global norms regarding environmental, social and corporate governance issues; involved in objectionable businesses (e.g., tobacco and firearms); or engaged in controversial ESG business practices.

— Check out Oranj Launches Free Wealth Management Software Product for Advisors on ThinkAdvisor.