Tidal ETF Services is partnering with Adasina Social Capital on the new “social justice” ETF.

Adasina Social Capital is committed to utilizing public financial markets to implement social justice. It spurs investors to divest from companies that are guilty of racial inequities, do not support gender equity, are unfair in their financial dealings with employees or the public, and contribute to detrimental climate change.

Adasina and Tidal ETF

Adasina launched in August with the brief to serve as a “critical bridge between financial markets and social justice movements.”

It has created the Adasina Social Justice Investing Criteria, a data-driven set of investment standards that reflects social justice values and supports progressive movements for change.

The firm’s approach is far more focused than socially responsible investing (SRI) and ESG practices. It concentrates on specific issues that directly impact underserved and marginalized communities.

Adasina and white label Tidal ETF Services are together offering the Adasina Social Justice All Cap Global ETF. (InvestmentNews)

Adasina Social Justice All Cap Global ETF

The Adasina Social Justice All Cap Global ETF is an actively managed ETF. It will consist of all or a representative sample of the securities in the Adasina Social Justice Index.

Adasina created the index by working closely with social justice organizations to build data sets that represent the issues most directly affecting their communities, with a particular focus on racial, gender, economic, and climate justice.

The Index comprises common and preferred stocks of domestic and foreign issuers, including those in emerging markets. Index constituents may be large-, mid-, or small-capitalization companies.

The ETF will likely commence trading later this quarter. Its fee structure is currently not available.

Positive trend

“It’s a positive sign that investors will have more choices to support racial equality,” said Todd Rosenbluth, director of mutual fund and ETF research at CFRA, to InvestmentNews.

Similar “justice” ETFs are the Impact Shares NAACP Minority Empowerment ETF (NYSEARCA: NACP) and the SPDR SSGA Gender Diversity Index ETF (NYSEARCA: SHE).

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