Active management has become a growing force, with nearly 60% of the ETFs launched last year being actively managed. Some relatively new ETFs combine the ever-increasing demand for environmental, social, and governance initiatives with security selection that have the potential for outperformance and greater transparency.
In the upcoming webcast, The Active Advantage For Environmentally Conscious ETF Strategies, Matthew Camuso, ETF Strategist, BNY Mellon Investment Management; Erin Spalsbury, Senior Portfolio Manager, Insight Investment; and Jennifer Law, Head of Stewardship, Newton Investment Management, will focus on several actively managed strategies that are positioned to meet the growing demand for environmentally consciousness and sustainability in both fixed income and equities.
BNY Mellon Investment Management offers a suite of three actively-managed sustainable exchange traded funds: the BNY Mellon Sustainable US Equity ETF (BKUS), the BNY Mellon Sustainable International Equity ETF (BKIS), and the BNY Mellon Sustainable Global Emerging Markets ETF (BKES). All three funds are sub-advised by Newton Investment Management Limited.
The three ETFs in this suite are designed to deliver a range of solutions to investors seeking long-term growth potential, with options for exposure to U.S. domestic portfolios and international and emerging markets.
The BNY Mellon Sustainable US Equity ETF aims to invest at least 80% of its net assets in equity securities of U.S. companies that demonstrate attractive investment attributes and sustainable business practices. Charles French and Yuko Takano are the fund’s primary portfolio managers.
The BNY Mellon Sustainable International Equity ETF typically invests at least 80% of its net assets in equity securities of foreign companies that demonstrate attractive investment attributes and sustainable business practices. Paul Markham and Yuko Takano are the fund’s primary portfolio managers.
Lastly, the BNY Mellon Sustainable Global Emerging Markets ETF (BKES) looks to invest at least 80% of its net assets in equity securities of companies listed on exchanges located in, organized in, having their principal place of business in, or having a majority of assets or business in, emerging market countries and that demonstrate attractive investment attributes and sustainable business practices. Paul Birchenough and Ian Smith are the fund’s primary portfolio managers.
Newton has a long track record of developing responsible investing and ESG solutions. Newton Investment Management Ltd has been proxy voting since the 1970s and employed responsible investment analysts since the 1990s — long before it became mainstream. It has been a signatory of the UN Principles of Responsible Investment since 2007 and joined the Net Zero Asset Managers initiative in March 2021, demonstrating its commitment to working with clients to help fulfill net-zero ambitions and to navigate portfolios through complex energy transitions. Newton currently manages sustainable investments across equity, fixed income, equity opportunities, equity income, multi-asset, and real return strategies.
Financial advisors who are interested in learning more about environmentally conscious ETF strategies can register for the Monday, June 27 webcast here.