Alternative Investments/ESG: Alpha Architect Mulls ETF For Companies Led By High-Character CEOs
The thematic fund is dubbed the “Return On Character ETF.”
If you like CEO’s that have high character, a clean non-controversial record, and achieved solid financial returns for their company’s shareholders with a focus on ESG, you’re in luck. You can now invest in companies led by such CEOs through the Return on Character ETF to be launched by Alpha Architect. (Seeking Alpha)
Alpha Architect: Return On Character ETF
The fund is actively managed and will invest only in US companies that are led by high-quality CEOs.
“Due to significance of CEO responsibilities, CEO character can positively affect their company’s return on assets and workforce engagement while reducing overall business risk,” says the filing for the ETF.
The investment process is described below:
- Analyze a preliminary universe of the largest 1,000 U.S. companies
- Using proprietary tools, calculate an integrity score for each CEO
- Also evaluate the CEO’s character using behavioural interviews with people having insight into the CEO’s character
- Evaluate the company’s involvement, if any, in controversies. Particularly assess those that relate to the CEO
- Construct a portfolio of about 75 to 150 companies that are led by high-character CEOs.
- An annual ranking will also take into account the company’s financial returns and its commitment to ESG factors
Alpha Architect’s fund charges a fee of 0.49%.
Related Story: Cathie Wood’s ARK Investment To Launch Transparency ETF
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