Fans of value-based and sustainable strategies have a new exchange-traded fund option allowing them to track large American companies.
On Tuesday, State Street Corp. released its SPDR S&P 500 ESG ETF, which includes firms in the S&P 500 that meet environmental, social and governance criteria.
Trading under the ticker EFIV, the fund will exclude companies involved with tobacco-related products and weapons, along with those that have a low ESG score from S&P Dow Jones Indices or a low United Nations Global Compact score. The cost is 10 basis points.
[Interested in even more ESG news? Check out InvestmentNews’ ESG Clarity US]
Investors are increasingly taking an interest in ESG characteristics as the COVID-19 pandemic continues, said Sue Thompson, head of SPDR Americas distribution at State Street.
“As you’re watching companies adapt to this human tragedy, companies that really focus on their employees’ health are going to come out of this stronger,” she said.
ETFs that fall under the ESG category have already taken in $14.7 billion in 2020, by far the best year on record according to data compiled by Bloomberg. Much of that reflects products from BlackRock Inc., the largest ETF issuer.
State Street is the third-largest ETF provider in the U.S., managing 16.5% of the $4.5 trillion assets. Its SPDR S&P 500 ETF Trust (SPY) is the world’s largest with about $289 billion in assets.
The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.
IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.
Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.
A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.
As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.
Wellington explores how multi strategy hedge funds may enhance diversification
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
