New Thematic ETFs With A Cause

2ndVote Funds, a new investment trust forged in partnership with Tennessee-based 2ndVote Advisers, is launching its two first ETFs this week.

The actively managed thematic equity funds are designed around conservative and faith-based values, according to 2ndVote Funds CEO Dan Grant, catering to anyone “who doesn’t agree with stakeholder capitalism,” and who wants to align their investments with their personal values.

The funds have a multilayered construction methodology that is built around a proprietary scoring system that measures a company’s level of social activism on various issues. This system was created by 2ndVote, a 501(c)(3) nonprofit organization. The ETFs are:

2ndVote Society Defended ETF (EGIS)

EGIS invests in large- and midcap U.S. companies (with at least $2 billion in market cap) that score highly on Second Amendment and border security social criteria, according to the prospectus.

Companies are screened for their level of activism on the right to bear arms as well as on border security and legal immigration issues. Activism is measured by metrics such as funding, lobbying and advocacy on these issues.

The companies that score highest are further ranked on value, dividend yield, and other quantitative and qualitative metrics that include governance, sales ratios and leverage.

2ndVote Life Neutral Plus ETF (LYFE)

LYFE relies on the same methodology as EGIS when it comes to quant and qualitative screens, but the fund focuses on a different theme: pro-life. Companies with at least $2 billion in market cap are ranked for their activism for pro-life causes, with the highest scoring being included in the portfolio.

Each ETF costs 0.75% in expense ratio, or $75 per $10,000 invested. They are both listed on Cboe Global Markets, parent company of ETF.com.

Contact Cinthia Murphy at [email protected]