New ETF Targets Ocean Health

A firm focused on impact investing has launched an actively managed ETF focusing on companies improving the ocean environment.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

Newday Impact entered the ETF market today with the launch of the Newday Ocean Health ETF (AHOY). The actively managed fund invests in companies that contribute to the protection and improvement of the health of the world’s oceans. 

AHOY comes with an expense ratio of 0.75% and lists on the NYSE Arca.  

The fund in particular targets companies that address plastic waste in oceans, support sustainable fisheries and seek to control acid levels worsened by carbon dioxide levels and climate change. Newday also aligns the portfolio with the UN Sustainable Development Goals. “Oceans are fundamental to the sustainability of the planet. It is the most important thing that we can address relative to climate change, because the oceans absorb most of the heat that is generated on the planet,” Newday Impact CEO Doug Heske said in an interview. “We've already seen significant challenges with reference to warming oceans, the impact on climate change, and it is something that has to be addressed most immediately,”  

In addition, the fund sponsor, which manages a range of portfolios aimed at socially responsible investors, donates 5% of the AHOY’s revenue to EarthEcho International, a charity founded by Philippe and Alexandra Cousteau, grandchildren of Jacques-Yves Cousteau. The charity’s expertise around ocean ecology is also leveraged by Newday in the construction of its portfolios. 

“Ocean health is critical to the survival of the planet for reasons ranging from its role in absorbing CO2 and supplying oxygen to providing food for billions of people around the world, creating millions of jobs, and even supplying ingredients for life-saving medications,” Philippe Cousteau said in a press release. 

“Newday Impact’s new ETF is an important step in helping fund companies that are investing in protecting the ocean ecosystem for future generations,” he added. 

AHOY at launch includes Alphabet Inc., 5.15%; Apple Inc., 5.03%; and Microsoft Corp., 5% among its top holdings. The fund holds roughly 50 equities in its portfolio.  

 

(Use our stock finder tool to find an ETF’s allocation to a certain stock.) 

 

Newday has another ETF focused on diversity, equity and inclusion In registration.  

 

Contact Heather Bell [email protected] 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.