Crossmark Global Investments has entered the ETF space with two actively managed exchange-traded funds — Crossmark Large Cap Growth ETF (CLCG) and Crossmark Large Cap Value ETF (CLCV) — to be managed with a values-based screening process by Bob Doll, CEO and chief investment officer.
The faith-based investment management firm cited investor demand for active, transparent ETFs with a values-focused, exclusionary and inclusionary approach. Ryan Caylor, portfolio manager and Crossmark research head, will co-manage the ETFs with Doll.
The funds will mimic the investment strategies of Crossmark's separately managed accounts, the firm said, noting that the portfolio managers aim to identify high-conviction securities and seek long-term capital appreciation through fundamental and quantitative factors, risk management tools and prudent portfolio constraints.
Crossmark Large Cap Growth ETF seeks to outperform the Russell 1000 Growth Index through investments in U.S. large cap growth equities, and Crossmark Large Cap Value ETF aims to outperform its benchmark, the Russell 1000 Value Index, by identifying resilient value securities. Both funds have a 0.50% expense ratio, per documents on Crossmark's website.
"We have always strongly believed that investors do not need to compromise on personal values in order to invest in outperforming strategies," Doll said. "Not only does our screening process exclude companies that have negative business practices or corporate governance concerns, but we also have the ability to actively include companies that work to reduce risk and build long-term resilience through responsible business practices."
"Moving into the ETF space was a natural next step in our firm's progression," said Heather Lindsey, Crossmark's distribution head. "These ETFs offer investors an accessible tool for actively managed investment solutions while satisfying demand for values-based investment options."
CLCG's top three holdings are Nvidia, Microsoft and Apple, while CLCV's are Bank of America, Wells Fargo and Cisco.
Net income for Crossmark, which is indirectly owned by a nonprofit organization, supports various ministry programs.
Illustration: Chris Nicholls/ALM; Courtesy photo
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