The new ETF will invest in companies depending on the character of their leadership.

ROC Investments, a California-based investment company that aims to be the market leader in measuring the character habits of public company senior leadership, has launched the ROC (Return On Character) ETF (BATS: ROCI). (BusinessWire)

The investing philosophy and strategy of the ETF will revolve around the identification of U.S. companies with management behavior that exemplifies the highest level of character. This is based on the belief at ROC that the market does not assign weightage to the value of exceptional character in a company’s leadership over the long term.

ROC (Return On Character) ETF (BATS: ROCI)

“The four pillars of ROC’s character model – Integrity, Responsibility, Forgiveness, and Compassion – are the same principles parents seek to instill in their children, and yet they are often found lacking in the financial world. Far more than exterior characteristics like education, tenure, politics, age, industry or religion, it is these interior traits that determine character. Our hope is that the ROC ETF will show that not only does character matter, but it is the best way to live and invest,” said Dan Cooper, Founder and CEO of ROC Investments.

A study by global consulting firm KRW International found that leadership teams with high character scores showed higher profitability (as measured by return on assets), higher workforce engagement and lower levels of corporate risk.

The top five holdings are:

• Apple Inc (NASDAQ: AAPL): 6.6%
• Microsoft Corporation (NASDAQ: MSFT): 6.1%
• Amazon.com, Inc. (NASDAQ: AMZN): 3.9%
• UnitedHealth Group Inc (NYSE: UNH): 2.8%
• Berkshire Hathaway (NYSE: BRK.A): 2.8%

Related Story: Timothy Plan Launches Two ETFs For Biblical Investing

Image of Apple CEO, Tim Cook: Flickr