ETF Targets Veteran Friendly Companies

New fund is the second launched to focus on this theme.

ETF.com
|
Reviewed by: etf.com Staff
,
Edited by: etf.com Staff

Today Pacer ETFs is rolling out an ETF that invests in companies whose employment policies are friendly to veterans of the U.S. military. The Pacer Military Times Best Employers ETF (VETS) joins a similar fund from InsightShares by UBS that launched earlier this year, the InsightShares Patriotic Employers ETF (HONR).

VETS has an expense ratio of 0.60% and lists on the Nasdaq exchange. HONR charges 0.65%.

Similar Methodologies

The new fund’s index methodology is not unlike that of HONR. It is based on The Military Times Best for Vets list that uses surveys to evaluate and rank U.S.-listed companies according to how well they recruit and support veteran and active service members through their culture, policies and accommodations, the prospectus says.

The index is derived directly from the list, which includes the top 60% of companies based on their scores. The stocks included in the index must be included in the list for the prior three years, have sufficient liquidity and have a market capitalization of at least $200 million. Companies making the cut are weighted equally within the index, the document says.

In January, VETS’ underlying index included 37 companies. That’s a fraction of the 104 included in HONR’s portfolio. However, the like HONR’s index, the prospectus for VETS notes its index has heavy weights in the financial, industrial and information technology sectors.

Contact Heather Bell at [email protected]

etf.com is the single source for ETF intelligence. We provide real-time ETF news and analysis to educate investors and drive financial knowledge in the space. Our personalized and accurate information, alongside industry-leading financial tools, are depended upon to develop winning investment and financial decisions. At etf.com, we strive to serve both the individual investor as well as the professional financial advisor to educate and grow the ETF community.