What You Need to Know
- Envestnet's enhanced ESG due diligence framework will evaluate equity and fixed income ESG strategies on its platform.
- AdvisorShares launched ETFs focused on two industries due for a post-pandemic comeback: hotels and restaurants.
- Invesco introduced a green building ETF.
Envestnet has launched an enhanced environmental, social and governance due diligence framework to evaluate equity and fixed income strategies on its platform.
The enhanced framework focuses on data from four key areas collected from asset managers via interactions and questionnaires involving ESG managers: firm-level ESG policies, ESG integration in the investment process, reporting reporting on impact and engagement on ESG issues.
These insights are then evaluated and scored by Envestnet to help “equip advisors with better information on ESG investment strategies, which they can use to cut through the excess noise as they effectively navigate the growing ESG fund landscape,” said Kiley Miller, associate portfolio manager at Envestnet | PMC, in a statement.
ESG investments have become the fastest-growing segment of Envestnet’s management money universe, increasing 98% in 2019 and 81% in 2020, according to the firm. As of year-end 2020, the Envestnet ecosystem has more than $20 billion in ESG assets under management or administration in over 335,000 client accounts that are overseen by more than 17,000 advisors.
AdvisorsShares Launches 2 Actively Managed ETFs
AdvisorShares has introduced two actively managed ETFs that invest in two different industries positioned for a comeback in the post-pandemic world.
The AdvisorShares Hotel ETF (BEDZ) and AdvisorShares Restaurant ETF (EATZ) each invest in about 50 or fewer stocks involved in the hotel and restaurant industries, respectively, along with related industries, and charge a 0.75% net fee for expenses.
BEDZ invested in hostels, resorts, cruise lines and other travel-related services. EATZ invests in restaurants, bars, pubs, fast food, takeout facilities and food catering services.
“We believe BEDZ and EATZ are uniquely positioned with their upside potential during an economic recovery and for the long-term growth opportunity that they may offer,” Noah Hamman, AdvisorShares CEO, said in a statement.
Both ETFs focus on companies with dominant positions in their respective markets, based on profitability, earnings quality, upside growth and technical attributes, and both are dynamically rebalanced and aim for low turnover.
Dan Ahrens, chief operating officer of AdvisorShares, is the portfolio manager of BEDZ and EATZ. He is also the portfolio manager of AdvisorShares Vice ETF, Pure Cannabis ETF (YOLO) and Pure U.S. Cannabis ETF (MSOS).
Invesco Expands Thematic Environmental ETF Suite
Invesco has launched the Invesco MSCI Green Building ETF (GBLD), which joins the firm’s suite of thematic environmental ETFs.