Daily ETF Watch: New Socially Focused Fund

Newcomer OWLshares files for sustainability ETF.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

A new firm has filed for an ETF focused on environmental, social and governance (ESG) issues. The OWLshares ESG 500 Index Fund will track an index of large-cap U.S. stocks that have been selected based on an ESG ratings system developed by New Millennium Macro, which does business under the name OWLshares.

The ESG score is based on multiple data points surrounding 85 ESG issues that are then used to develop a composite score. Potential components must score above zero and fall within the top 500 U.S. stocks in terms of market capitalization, according to the prospectus—which implies that the index will have no more than 500 components, and probably markedly fewer.

Company composite scores are also used to determine their respective weightings within the index, with higher-scoring companies receiving higher weightings, the prospectus said.

The filing did not include a ticker, expense ratio or listing exchange.

OWLshares had filed for a fund in the last quarter of 2015, but recently withdrew the registration before filing for the ESG ETF.

Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.