ETF Launches: ECLN

Launches were sparse in August.

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Reviewed by: Heather Bell
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Edited by: Heather Bell


FEATURED ETF
First Trust EIP Carbon Impact ETF (ECLN)
Fund targets companies aiming to lessen their carbon footprint

First Trust launched an actively managed ETF that invests in utility and energy companies looking to minimize their carbon footprint.

The First Trust EIP Carbon Impact ETF (ECLN), which is subadvised by Energy Income Partners (EIP), costs 0.95% in expense ratio, or $95 per $10,000 invested. It’s listed on NYSE Arca.

 

 

ECLN is designed to offer capital appreciation and dividend income stemming from earnings growth in utilities linked to growing usage of alternative energy. It’s a fund that employs a four-step process to screen companies for a positive carbon impact while excluding coal producers, as well as companies involved with any part of the crude oil exploration and distribution chain.

Electric energy names dominate the portfolio, representing about 70% of the industry mix, according to First Trust data.

ECLN joins other funds focused on carbon footprint—among the broader environment, social, governance ETF universe—including the $452 million iShares MSCI ACWI Low Carbon Target ETF (CRBN) and the $80 million SPDR MSCI ACWI Low Carbon Target ETF (LOWC).

Source: ETF.com. Data and information as of 8/31/2019.
ETF Filings sidebar covers launches and closures for the month of August 2019.

 

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.