Impact Shares Unveils Global ESG ETF

As world leaders continue to meet in Glasgow for the United Nations Climate Change Conference, Impact Shares is debuting a climate-focused global equity ETF developed with input from a UN panel.

The Impact Shares MSCI Global Climate Select ETF (NTZO) launched on the NYSE Arca Wednesday with an initial expense ratio of 0.30%, which will increase to 0.62% after an expense waiver ends in November 2022.

NTZO follows the MSCI ACWI Climate Pathway Select Index, which is based on the MSCI’s lead global equities index and implements ESG screens against companies that generate revenues from firearms, alcohol, tobacco or any type of fossil fuel. The energy exposure in the index is replaced with companies that generate at least 20% of their revenues from renewable energy production.

The index was co-created by Impact Shares and members of the Global Investors for Sustainable Development Alliance, a UN-convened group of leaders from 30 of the largest banks, investment funds and exchanges in the world that promotes sustainable growth practices.

Any excess revenues generated by the fund will be donated to the United Nations Capital Development Fund, which aims to generate financing options in the world’s least-developed countries.

Impact Shares Chief Investment Officer Ethan Powell told ETF.com the index also screens to make sure included companies have made a “credible” pledge to produce net-zero emissions within the coming decades or have reduced their carbon emissions by 7% annually across all three scopes.

“What this fund represents is a confluence of every sector of our society understanding the importance of credible net-zero pledges and combining efforts to produce a strategy that reflects sort of the collective wisdom of all sectors of our society,” he said.

NTZO is the second UN-linked ETF issued by Impact Shares. The firm previously issued the Impact Shares Sustainable Development Goals Global Equity ETF (SDGA), a mid- and large cap global equities ETF that donates profits to the UN Capital Development Fund. SDGA has gathered just shy of $5.8 million since launching in September 2018.

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