USA
Goldman Sachs lists an ESG ETF
Goldman Sachs is teaming up with the Just Capital Foundation, the charity of billionaire Paul Tudor Jones, to list a new ESG ETF. The Goldman Sachs JUST US Large Cap Equity ETF (JUST) will invest in companies that engage in “just business behavior” based on rankings produced by Just Capital Foundation, the prospectus says.
Every year, Just Capital ranks companies in the Russell 1000 Index based on seven issue areas:
- how they treat their workers
- their customers
- the communities they interact with
- the environment
- their shareholders
- their commitment to making quality and beneficial products
- job creation.
Just Capital will use survey evidence to decide how well companies are doing at adhering to these social justice objectives. The top-ranked 50% of companies in the survey will then be put in the ETF and then weighted by market capitalisation. The goal of this ETF and index, is to “encourage greater accountability in the business community and drive positive change among large publicly-traded U.S. corporations,” the prospectus says.
Fidelity lists new smart beta bond ETFs
Fidelity is listing two new smart beta bond ETFs, targeting specific factors. They are:
- Fidelity High Yield Factor ETF (FLHY)
- Fidelity Low Duration Bond Factor ETF (FLDR)
FLHY is actively managed and will selectively track the ICE BofAML BB-B US High Yield Constrained Index, while screening for credit quality. The index includes both US and foreign issues and debts of any quality. This includes companies in severe financial distress.
FLDR is passively managed and will target the Fidelity Low Duration Investment Grade Factor Index, which includes US investment-grade floaties and US government bonds. The index will be designed so that the maximum duration on any bond is one year.
Amplify lists tactical growth ETF
Amplify is listing an ETF-of-ETFs that will invest in equity and bond ETFs, as well as individual company's shares. The Amplify EASI Tactical Growth ETF (EASI) will track a multi-asset index from EASI Investments that uses momentum to pick what to invest in.
More specifically, the index looks at “Long-Term Tactical Allocation Signal”, the prospectus says. In short, the signal investigates weekly market momentum and signals to invest in equities when momentum is going up, while signaling a retreat into bonds when momentum declines.
EASI will act on the upward momentum signal by buying large cap stocks as well as equity ETFs. It will act on the downward signal buy buying five US investment grade bond ETFs.