Vanguard added to its environmental, social and governance fund offering with two new exchange traded funds.
The Vanguard ESG U.S. Stock ETF (ESGV), which has an expense ratio of 0.12%, seeks to track the FTSE U.S. All Cap Choice Index, an ESG-screened, market-cap weighted benchmark comprising large-, mid-, and small-cap U.S. stocks.
The Vanguard ESG International Stock ETF (VSGX), with an expense ratio of 0.15%, targets the market-cap weighted, ESG-screened FTSE Global All Cap ex U.S. Choice Index of large-, mid-, and small-cap stocks in developed and emerging international markets.
Both ETFs can be purchased commission-free from Vanguard and are available on other leading trading platforms.
“Vanguard’s new ETFs can serve as core components of a portfolio for individuals, institutions and advisors who wish to invest in broadly diversified, low-cost ETFs screened for certain ESG criteria,” Matthew Brancato, head of Vanguard’s Portfolio Review Group, said in a statement. “At the same time, investors should recognize that funds with ESG screens may perform differently than the broad market due to the exclusion of stocks of certain companies.”
Covering more than 80% of the U.S. equity market capitalization and nearly 70% of the international equity market capitalization, the funds exclude companies involved in the production of alcohol, tobacco, gambling, adult entertainment, weapons, fossil fuels and nuclear power. The construction methodology also excludes companies that do not meet certain diversity criteria, as well as the labor, human rights, anti-corruption, and environmental standards defined by the U.N. Global Compact Principles.
TCA by E-Trade Continues Expansion of ETF Trading Platform
TCA by E-Trade announced the expansion of its ETF Custody Advantage program, adding ETFs from WisdomTree, JPMorgan and Nationwide. The enhanced offering provides advisors who use TCA by E-Trade access to a diverse range of ETFs.
WisdomTree, the newest addition to the ETF Custody Advantage program, will give advisors on the platform 77 new investment choices. In addition, the program will add new ETFs from JPMorgan (expanding on the current JPMorgan lineup) and Nationwide — giving advisors a broader array of assets classes for the benefit of their clients.
ETFs participating in the ETF Custody Advantage program receive a custody fee offset, automatically applied to assets held in ETFs on the platform.
Vesper Capital Management Launches New ETF
Vesper Capital Management has partnered with Exchange Traded Concepts to launch a new ETF that aims to capture a unique high-turnover, high potential alpha trading strategy.
The Vesper U.S. Large Cap Short-Term Reversal Strategy ETF (UTRN) provides exposure to a select group of stocks within the S&P 500 that have the potential to benefit from a unique trading anomaly: short-term reversal.
UTRN applies a proprietary methodology, the Chow Ratio, to identify stocks that have experienced a recent sharp decline in share price but which show the greatest potential for a weekly rebound.
Based on the UTRNX index, which is calculated by S&P Dow Jones Indices, UTRN provides investors with the opportunity to capitalize on the tendency for stocks that have experienced sharp, short-term declines to quickly bounce back or rebound.
The fund, which has an expense ratio of 0.75%, will rebalance weekly and will have a concentrated portfolio of 25 stocks.
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