Today, LGBTQ Loyalty Holdings, in conjunction with Procure ETF Trust, rolled out an ETF that targets companies that exhibit strong financial performance, have good overall ESG characteristics and are supportive of the LGBTQ community, among other criteria. The LGBTQ + ESG100 ETF (LGBT) tracks an index of 100 securities in the U.S. large cap segment.
The fund comes with an expense ratio of 0.75% and lists on the Nasdaq stock market.
“I’m very proud to be part of this doubly beneficial effort: It provides supporters of LGBTQ equality with access to investments that reflect their values, while simultaneously rewarding businesses that demonstrate that ethical behavior and profitability are fully compatible,” said Barney Frank, a former U.S. congressman and a member of LGBTQ Loyalty’s board of directors.
LGBT’s underlying index starts from a universe that consists of Fortune 1000 companies that receive a 100% score on an annual self-reported survey conducted by an LGBTQ advocacy group that evaluates companies based on their creation of a nondiscriminatory workplace, benefits offered for LTBTQ workers and to what degree the companies foster a culture of inclusivity and corporate social responsibility. The fund also looks at criteria around how the LGBTQ community views eligible companies, according to the prospectus.
The ESG element screens companies out if they are classified as falling into industry groups related to weapons, tobacco or pornography. A classification in the gaming industry can also be grounds for removal if the company is not determined to be sufficiently supportive of ESG or the LGBTQ community. The index’s methodology also considers sales growth, with a company’s ranking for that metric among its peers serving as a key selection criteria, according to the fund document.
LGBT is the first fund focused on the LGBTQ community to offer a three-pronged approach that takes into account not just support for and by the LGBTQ community but also ESG criteria and financial performance.
Contact Heather Bell at [email protected]