Impact investing is garnering more attention, but it’s often framed in terms of a style — not something that’s applicable for funds to perform.
However, it is possible for money managers to do right by investors and the world at large. Take the case of the Dual Impact exchange traded funds from New York Life Investments (NYLIM). The IQ Healthy Hearts ETF (HART) is part of that group.
HART follows the IQ Candriam Healthy Hearts Index and lives up to its billing as a dual impact ETF.
“Enhance portfolio potential and advance social good – investing in HART helps further NYLIM’s ongoing contributions to support the American Heart Association’s Social Impact Fund,” according to the issuer.
Owing to heart disease’s status as one of the biggest health problems in the U.S., many Americans are familiar with the Heart Association, but they may not be familiar with the social impact fund and the good it does in communities across the country.
One of the groups the American Heart Association’s Social Impact Fund works with is the Hmong American Farmers Association (HAFA) — a St. Paul, Minnesota-based nonprofit that helps Hmong farmers build their businesses and wealth.
“They didn’t have access to capital or credit. And this is really important because, you know, I can be a wonderful farmer. I can have access to the land, you know, for long term. I can have a really vibrant market,” said Pakou Hang in an interview with NYLIM’s “Love Takes Action” podcast. “But, if I don’t have access to additional capital to maybe buy that land or buy a tractor that will help me make my operation much more efficient, then I’m going to be stuck there. I’m going to be bounded by how much I can grow, how much money I can make, because I don’t have access to additional funds to invest to grow my business.”
The American Heart Association is having a clear impact with HAFA, confirming that HART investors don’t just get upside investment potential, they also gain the ability to directly have positive impacts on communities across the country.
“So, as a result of the American Heart Association and their support, that HAFA was able to implement their very first federally recognized food safety training for Hmong farmers,” said Janssen Hang. “And why you say this, is that as a result of the Food Safety Modernization Act, which the Federal regulations require that every single producer must comply and must have this training.”
Amid wide-ranging efforts to modernize and refresh food consumption and production trends, the American Heart Association’s relationship with HAFA is exceedingly relevant, indicating the same is true of HART itself.
For more news, information, and strategy, visit the Dual Impact Channel.
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.