Impact Shares has partnered up with the United Nations Capital Development Fund, the UN agency that makes public and private finance work for the poor in the world’s 47 least developed countries, to expand its line of socially responsible exchange traded funds with a new strategy that adheres to the sustainable development goals outlined by the U.N.
Impact Shares recently came out with the Impact Shares Sustainable Development Goals Global Equity ETF (NYSEArca: SDGA), which has a 0.76% expense ratio.
The Impact Shares Sustainable Development Goals Global Equity ETF tries to reflect the performance of the Morningstar Societal Development Index, which covers large- and mid-capitalization companies globally that display a commitment to the UN’s Sustainable Development Goals, adhere to the principles of the UN Global Compact, display a commitment to reducing poverty and supporting economic development globally and have exposure to countries with low levels of socioeconomic development, according to the fund prospectus.
“We are proud to partner with Impact Shares and The Rockefeller Foundation to launch the first-ever UN ETF,” UNCDF Executive Secretary Judith Karl said in a note. “As a UN aid agency working in the world’s poorest countries, we are often asked by pension funds and socially-conscious investors how they can use their investment dollars to support the UN Sustainable Development Goals (SDGs). This ETF offers those clients an exciting way to support the UN’s work while rewarding companies with accountable business practices and good management policies. We hope the ETF will encourage more companies to report on environmental, social and governance issues, as well as how their businesses are aligning with the UN SDGs. We also hope the index will grow to include increasingly larger numbers of LDC companies over time.”
SDGA’s underlying index screen companies based on a set of rigorous selection criteria reflecting customized environmental, social and corporate governance indicators and alignment with the SDGs.