The latest ETF to be launched by Strategy Shares—an ESG product—is a bit of a departure for the firm. The Strategy Shares Halt Climate Change ETF (NZRO) is actively managed and looks to invest in companies that, in addition to having strong fundamentals, are demonstrating a commitment to combating climate change through their products and services or company policies.
The fund comes with an expense ratio of 0.95% and lists on the Nasdaq stock exchange.
Companies are eligible for inclusion if they have made a commitment to achieving net zero or significantly reducing their carbon emissions; are an energy company that generates at least half of its revenues from alternative energy activities; or if they are a company that generates at least half of its revenues from business activities that advance the reduction of carbon emissions.
“We're just trying to focus on those companies that are the actual solution to the problem, rather than those that are contributing to the problem, but are trying to ameliorate their impact,” said Strategy Shares Chief Investment Officer David Miller, who is also one of NZRO’s creators and portfolio managers. He notes that profits from the fund will be invested in activities aimed at halting climate change.
At launch, the fund had nearly 200 holdings in its portfolio, with the largest weightings to Tesla at 2.6%, Microsoft at 2.5% and Apple at 2.5%.
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Contact Heather Bell at [email protected]