It’s only been listed on NYSE since Tuesday, but there’s been lots of buzz on Beyond Investing’s first ETF: the US Vegan Climate ETF (VEGN).
As previously reported on ETF Trends, VEGN tracks the Beyond Investing US Vegan Climate Index, which is a passive, rules-based index of U.S. large cap stocks, screened according to vegan and climate-conscious principles, excluding stocks of companies whose business activities include animal exploitation, defense, human rights abuses, fossil fuels extraction energy production, and other environmentally damaging activities.
While this is Beyond Investing’s first ETF, all three co-founders are finance industry veterans, as well as passionate animal advocates and environmentalists. All have been involved in or had interest in ESG products for several decades.
“While Beyond Investing doesn’t currently have any other SEC filings for ETFs, we don’t rule out future products down the track,” Beyond Investing CEO Claire Smith told ETF Trends. “We are tracking the results of the US Vegan Climate ETF carefully to determine the need and viability of any additional financial and investment instruments we may decide to release.”
The index has nearly 280 components with an average market value of around $220 billion. The full line-up of holdings can be viewed at www.veganetf.com.
Notable exclusions from the ETF include Amazon, JPMorgan Chase, Johnson & Johnson, Exxon Mobil, Procter & Gamble, Chevron, Coca-Cola, Pepsico and McDonalds.
By excluding these companies and many others via this passive index, VEGN seeks to provide market-capitalization-weighted exposure to US companies that satisfy its rigorous ESG standards, limiting its largest holdings to 5% of the total portfolio.
By being animal-friendly, VEGN aims to exclude from consideration companies that harm animals, screening out companies that are involved in animal testing, animal-derived products, as well as animals in sports or entertainment.
Finally, it’s goal is to be “good for the environment, good for people”. Beyond Investing says VEGN screens out companies involved in fossil fuels and their use in energy production and also excludes companies involved in military and defense, as well as human rights abuses.
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