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.
Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.
Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.
Asset managers are racing to bring private market products to retirement plans, but cost and liquidity concerns linger.
Treasury's latest tax-exemption crackdown on private schools lands in the wake of a separate push to restrict refundable credits for some immigrant filers.
Workforce trust measures predicted which companies came out ahead during COVID-19. The same dynamic may now be playing out across the AI transition — and the data suggests the spread could be just as wide.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
