USA
ETF Series Solutions lists a fossil fuel free ETF
ETF Series Solutions, of Brand Value ETF fame, is listing an ESG ETF with a bite, The Change Finance Diversified Impact US Large Cap Fossil Fuel Free ETF (CHGX).
CHGX uses a purpose-built index made up of 100 US businesses and REITs.
Its index is built by screening stocks in the Solactive US Large & Mid Cap Index for their ESG footprints. Oekam Research, a German sustainability ratings agency, looks at what industry companies are in and immediately excludes those in oil, gas and coal. Companies in weapons, nuclear power, pesticides and GMO receive negative scoring but are not ipso facto excluded. Oekam then looks at whether companies have a “history of controversial business practices”. Controversial practices can include environmental destruction, treating employees badly, rampant tax avoidance and negligent safety records.
What companies remain are then sorted by sector, ranked by market cap and the top 100 selected. Selected companies receive an equal weight of 1%. Companies are deliberately chosen such that the sector balances corresponds to the Solactive US Large Cap Index. “For example, if the technology sector makes up 13.27% of the Solactive US Large Cap Index, the 13 largest technology Eligible Companies will be included in the Index with a total weight of 13%,” the prospectus says.
OTC listing
Evolve lists car innovation ETF
Canadian issuer Evolve has its car innovation ETF on the OTC market in the US. The Evolve Automobile Innovation Index ETF (EATOF) invests in companies that help develop electric gearboxes, self-driving or network services for cars. It is the first ETF that tracks an index of this type.