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Goldman Launches Its First Active ETF: Portfolio Products

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What You Need to Know

  • As a measure of that belief, Goldman says it “intends to invest in the Fund alongside its clients.”
  • VanEck has launched the VanEck Environmental Sustainability Fund, which invests in multiple sustainability sectors.
  • Betterment started integrating the new VOTE ETF into SRI portfolios on all platforms.

Goldman Sachs has launched its first actively managed ETF, the Goldman Sachs Future Planet Equity ETF (GSFP), which will invest in companies addressing the environmental challenges critical to the future of the planet.

These include companies involved in clean energy, resource efficiency, sustainable consumption, water sustainability and the circular economy, which integrates recycling and spare use of resources for the health of the planet.

The ETF will use active bottom-up security selection to target companies that have the potential to drive more sustainable practices and deliver strong returns across various sectors, geographies and market capitalizations. The ETF trades on the NYSE and has an expense ratio of 0.75%.

“We believe we are on the cusp of a sustainability revolution that could have the scale of the industrial revolution and the speed of the digital revolution. In our view, this may give rise to a unique wealth creation opportunity for investors over the next decade,” said Katie Koch, co-head of the Fundamental Equity business within Goldman Sachs Asset Management, in a statement.

As a measure of that belief, Goldman says it “intends to invest in the Fund alongside its clients.” Goldman also invests alongside investors in its JUST U.S. Large Cap Equity ETF, a passive ETF based on an index that focuses on companies that treat workers and customers well and care about environmental impacts.

VanEck Introduces Mutual Fund Focused on Energy Transition

VanEck has launched the VanEck Environmental Sustainability Fund (tickers are ENVAX, ENVIX and ENVYX), an actively managed mutual fund that invests in companies involved in multiple sustainability sectors, including renewable energy, smart resource management, agriculture technology, recycling, water and advanced materials.

The fund uses a research and engagement framework focused on CLAW metrics, which measures progress around sustainability efforts related to climate, land, air and water. The fund will also focus on companies with a managerial commitment to governance, engagement and reporting.

“Our goal is to provide investors with a means through which they can invest in and support publicly traded companies that are measurably addressing climate change by developing innovative solutions to environmental issues for the long term,” said portfolio manager Shawn Reynolds, who also manages the VanEck Global Resources Fund (GHAAX).

Total operating expenses of the fund range from 0.95% for institutional shares to 1.25% for Class A shares, which have a sales load of up to 5.75%.

Invesco Adds Multi-Factor ETF Suite

Invesco Ltd. has introduced a new multi-factor ETF suite that tracks  the S&P Quality Value & Momentum Top 90% Indices from S&P Dow Jones.

The suite consists of three ETFs that track three different multi-factor indices by market cap — large-, mid-, and small-cap — which is then trimmed using a factor screen to target exposure to U.S. stocks with the highest quality, value and momentum multifactor score. The new ETFs are:

  • Invesco S&P 500 QVM Multi-factor ETF (QVML)
  • Invesco S&P MidCap 400 QVM Multi-factor ETF (QVMM)
  • Invesco S&P SmallCap 600 QVM Multi-factor ETF (QVMS)

Their expense ratios range from 0.11% for WVML to 0.15% to QVMM and QVMS.

The S&P Quality, Value & Momentum Top 90% Multi-factor Indices exclude companies with the lowest quality, value, and momentum multifactor score. and weights their constituents by float-adjusted market capitalization, subject to certain constraints and are rebalanced quarterly.

Betterment Begins Integrating Engine No. 1 VOTE ETF on Its Platforms

Betterment has begun integrating the new Transform 500 ETF (VOTE) into the socially responsible investing portfolios on all its platforms — for do-it-yourself retail investors, financial advisors and retirement accounts.

The ETF, which has a 0.05% net expense ratio and invests in the 500 of the largest U.S. companies included in the Morningstar Large Cap Select Index, is focused on shareholder engagement through proxy voting. It intends to run a handful of proxy voting campaigns focused on improving companies’ environmental and social practices — a strategy Engine No. 1 successfully spearheaded with ExxonMobil, ultimately replacing three new board members with support from BlackRock, Vanguard, State Street and others.

The VOTE ETF will be included in Betterment’s Broad Impact, Social Impact, and Climate Impact portfolios with a target weight equal to 10% of a client’s U.S. stock allocation, according to Boris Khentov, Betterment’s head of sustainable investing, who wrote a blog post on the new addition.

Investors who own VOTE will receive a short “ballot” where they can choose which of four possible shareholder engagements they want Engine No. 1 to prioritize. Betterment will then pass on those aggregate results to Engine No. 1, opening up a dialogue between the fund and its shareholders, according to Khentov. He says Betterment expects VOTE “will create a whole new category of financial products for retail investors, just as Betterment did when it launched in 2010.”

New Tech-Focused ETFs Launch

Jacob Asset Management, which launched the Jacob Internet Fund in 1999, has now added its first ETF, the Jacob Forward ETF (JFWD). The actively managed ETF invests in innovative, forward-thinking companies that the team believes are leveraging technology to create significant competitive advantages and ultimately, superior, lasting growth.

While it can invest in a variety of sectors, its primary focus is technology and health care. It is an actively managed ETF that can be bought and sold through online brokerage platforms or a personal financial advisor. The new ETF has an expense ratio of 0.75%.

Defiance ETFs has launched the Big Data ETF (BIGY), a rules-based ETF that targets companies involved in data science and analytics. Trading on the NYSE, the ETF tracks the BlueStar Big Data & Analytics Index, which, according to the ETF’s summary prospectus filed with the SEC, was composed of 29 constituents, including eight that were listed on a non-U.S. exchange as of May 26, 2021. The ETF has an expense ratio of 0.45%.

Pacer Introduces 2 Dividend ETFs

Pacer ETFs, in partnership with Metaurus Advisors, has launched two dividend ETFs — the Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF (QDPL) and the Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF (TRPL).

QDPL seeks to provide cash distribution equal to 400% of the S&P dividend yield in exchange for about 99% of the price return performance of the S&P 500. TRPL seeks cash distributions equal to 300% of the S&P dividend yield in exchange for about 92% of the price performance of the S&P 500. Both ETFs have net expense ratio of 0.79%.

Leavenworth Capital Launches

Leavenworth Capital is a new asset management firm specializing in designing, developing and managing institutional-grade crypto asset SMAs for financial advisors, RIA firms and intuition and individual investors.

The Portland, Oregon-based firm is led by Jack Shepherd, its founder and CEO, who was previously at Thornburg Investment Management, Deutsche Bank, Jensen Investment Management and most recently Transamerica — primarily in sales and client services.

Ranjan Grover, chief investment officer portfolio manager, leads the investment team. He is a former data scientist and project engineer at Intel.


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