The firm's first SRI-themed fund provides single-trade exposure to 100 global climate change leaders
Horizons ETFs is set to capitalize on the trend toward responsible-investing assets with its latest exchange-traded fund.
The Horizons Global Sustainability Leaders Index ETF (ETHI), now trading on the TSX, is the firm’s first fund focused on the theme of socially responsible investing (SRI). Tethered to the Nasdaq Future Global Sustainability Leaders Index, it seeks to replicate the benchmark’s performance, to the extent possible and net of expenses.
ETHI will provide exposure to 100 of the world’s largest companies, based on market capitalization, with a demonstrated core commitment to environmentally sustainable business practices. With that, investors can have access to an SRI-screened passive portfolio with a genuinely low carbon footprint.
The Nasdaq Future Global Sustainability Leaders Index screens for qualifying equities based on the following factors:
- Companies must not be engaged in activities considered inconsistent with SRI principles, such as fossil-fuel production, armaments, tobacco, gambling, and animal cruelty;
- Companies must either have a carbon impact that’s at least 60% lower than their industry’s average, or be engaged in activities that can help reduce other industries’ carbon use; and
- Companies are chosen from developed markets, and must meet market-cap and liquidity requirements.
“We believe ETHI provides a good balance between buying 100 of the world's largest and most successful companies that have also demonstrated a key commitment to ethical and environmentally sustainable business practices,” said Horizons ETFs President and CEO Steve Hawkins. “We're proud to introduce our first responsible investing product aimed at mitigating climate change and to empower Canadians to invest according to their principles.”
Recently, the firm became a member of the Responsible Investment Association (RIA), the leading organization in Canada’s ethical-investing space. The RIA’s objective is to arm investors, advisors, and financial-services companies with knowledge, tools, and advocacy to promote RI practices.
“We congratulate Horizons ETFs on the launch of the Horizons Global Sustainability Leaders Index ETF,” said RIA CEO Dustyn Lanz. “This new product will help Horizons ETFs serve the growing investor demand for responsible investment solutions.”
According to a recent report from the RIA, RI assets in Canada reached $2.1 trillion as of December 31, 2017, which corresponds to 51% of the whole Canadian investment industry.
