The regulation surrounding ESG funds remains nebulous within the U.S. as the SEC ponders how to apply a regulatory framework to the space and investors remain concerned about greenwashing. For investors wondering how to invest in targeted ways to promote reduced emissions while supporting non-profit organizations working for good causes, IndexIQ offers two different ETFs.
Cleaner Transportation, Wildlife Conservation
The IQ Cleaner Transport ETF (CLNR) provides an investment opportunity within the emissions transition of the transportation sector. CLRN seeks to provide investors with exposure to global companies focused on clean energy resources, transportation equipment and services, technology that makes transportation more efficient, and infrastructure components.
The fund has a dual impact in that it has aligned with the National Wildlife Federation and donates a portion of CLNR’s management fees to the organization. The NWF has been working for over 80 years to protect, restore, and manage habitats and has helped to bring many species back from the edge of extinction, including elk, deer, eagles, bighorn sheep, and whales, per the website.
Through investment in CLNR, you help fund critical work to help save ecosystems and wildlife through NWF’s hands-on programs such as securing clean water for both wildlife and people and working with indigenous populations to preserve vital ecosystems. NWF also engages in community outreach efforts that include the Early Childhood Health Outdoors program, which provides safe outdoor play spaces for children, college programs to reduce waste, and partnering with over 500 cities to create natural, native spaces for wildlife.
Cleaner Oceans and Air, Ocean Conservancy
The IQ Clean Oceans ETF (OCEN) invests in the blue economy, which is estimated to be worth roughly $2.5 trillion annually and is anticipated to grow twice as fast as the mainstream economy by 2030. OCEN seeks to offer exposure to companies involved in pollution reduction, carbon efficiency, clean energy, sustainable oceans, or cleaner shipping. These companies offer products or services that work to protect the oceans or promote cleaner oceans, use products or services that accomplish those goals, or else engage in activities that have ocean-related sustainability goals.
OCEN was developed in alignment with Oceana and contributes a portion of its management profits to Oceana, the largest international advocacy organization to focus on ocean conservation. To date, Oceana has protected over 4.5 million square miles of ocean and the aquatic life that lives within it, per its website.
Oceana has campaigned successfully to have endangered species such as the North Atlantic shortfin mako shark removed from fishing lists, has worked with Google and Skytruth to create a platform that tracks industrial fishing practices (Global Fishing Watch), and worked with governments around the world to protect marine life, ecosystems, and the people that rely on them for a living. Oceana has also successfully campaigned with other allies to convince Coca-Cola to reduce its use of single-use bottles and instead increase the number of bottles it sells in reusable packaging, with one refillable bottle able to be reused 30–50 times.
Both funds carry an expense ratio of 0.45%.
For more news, information, and strategy, visit the Dual Impact Channel.