ETF Watch: Global X Adds Socially Responsible Fund

ETF Watch: Global X Adds Socially Responsible Fund

New fund focuses on companies generating positive outcomes.

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

Today Global X has launched a socially responsible ETF on the Nasdaq stock exchange. The Global X Conscious Companies ETF (KRMA) comes with an expense ratio of 0.43%.

The fund tracks the Concinnity Conscious Companies Index that focuses on companies that make corporate decisions and solve problems while taking into consideration the interests of five different types of stakeholders: customers, employees, suppliers, stock and debt holders, and communities where the company operates, according to the prospectus. The methodology refers to this as a multistakeholder operating system.

Eligible companies must be listed in the U.S. and have market capitalizations of at least $2 billion. From there, Concinnity analyzes each company using 40 different information sources and ranking systems to winnow the selection universe down to 600-700 companies. The methodology then applies another level of screening based on different multistakeholder criteria, selecting the top 300-350 companies.

A final screen requires that component companies have a record of three consecutive years of eligibility for inclusion. As of the end of May, the index included 115 components.  

Socially responsible and environmental/social/governance ETFs have been a building wave, with an increase in filings and launches. Most recently, iShares rolled out two ESG ETFs at the end of June, the iShares MSCI EAFE ESG Select ETF (ESGD) and iShares MSCI EM ESG Select ETF (ESGE).

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.