AdvisorShares has partnered with environmental advocate Philippe Cousteau, Jr. to launch an actively managed exchange traded fund that focuses on sustainable investment themes, with a philanthropic objective.
On Thursday, the AdvisorShares Global Echo ETF (NYSEArca: GIVE) began trading, according to a press release. [AdvisorShares to Launch Sustainable ETF]
GIVE has a high expense ratio of 1.7%, of which 0.40% will go directly to Cousteau’s Global Echo Foundation – the foundation provides resources to ameliorate social issues like those that impact women and children, for environmental conservation and to support social entrepreneurship.
The fund will try to generate long-term capital appreciation with an emphasis on absolute positive returns and a low correlation to traditional financial market indices. The ETF will include a focus on U.S. fixed-income, long-only global equity and alternative long/short trend following strategies.
As of May 23, top holdings include cash 27.3%, ProShares Short MSCI EAFE (NYSEArca: EFZ) 2.5%, Cohen & Company 2.1%, ProShares Short MSCI Emerging (NYSEArca: EUM) 2.1% and ProShares Short DOW30 (NYSEArca: DOG) 1.7%.
The fund has four portfolio managers allocating to sustainable fixed-income, long-only equity and alternative long/short trend-following strategies over a full market cycle. Asset weightings include cash 27%, fixed-income 5%, domestic equities 33%, foreign equities 19% and short exposure 15%.
For more information on new products, visit our new ETFs category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.