On Tuesday, Stance Capital, a pioneer in quantitative ESG investing and research, announced the launch of the Stance Equity ESG Large Cap Core ETF (NYSE: STNC). The fund will be a series of The RBB Fund Inc. and will use Blue Tractor’s Shielded Alpha ETF wrapper.
Stance Capital, founded by Bill Davis in 2016, offers a differentiated approach to ESG investing. Its active, semi-concentrated strategy, with a proprietary machine learning model and risk optimization overlay, was previously only available in separately-managed accounts and through model delivery.
“We started Stance Capital to dispel the notion that investing in companies with strong ESG indicators will lead to under-performance,” said Davis. “We believe that with proper portfolio construction, values alignment is a free option for investors.”
Finding the Right Platform
Stance selected The RBB Fund Inc. as the fund’s platform, in part because RBB’s affiliation with Blue Tractor allows for the use of Blue Tractor’s Shielded Alpha solution, which offers investors all the benefits of an ETF – lower trading costs, greater tax efficiency, and intra-day trading liquidity – while also safeguarding Stance’s portfolio management and trading strategy.
“In partnering with RBB, we found a platform willing to work with our needs and create a custom solution to suit our growing client base,” Davis said. “We are excited to offer a unique approach to ESG investing, one that is ‘core’ by design, with far less dependence on mega-cap tech companies than most ESG strategies are providing today.”
“We are thrilled to be working with Stance Capital and assisting them in bringing their separately managed account composite, which has outperformed the S&P 500 over the past seven years, to the market in an ETF structure,” said Arnold Reichman, Chairman of the RBB Board.
For more information regarding Stance Capital, visit www.stancecap.com.
For information regarding the RBB Fund, Inc., visit www.rbbfund.com.
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