Alternative Investments/ESG: In A World First, Evolve Offers Investments In Major Indices Sans Carbon Footprints
Evolve launches two new ETFs providing a clean beta solution to investing in the S&P/TSX 60 and the S&P 500 indices.
Evolve Funds Group has filed the final prospectus for its launch of the world’s first ETFs that bring carbon neutrality to traditional indices. The Evolve CleanBeta series of ETFs will flag off with the Evolve S&P/TSX 60 CleanBeta Fund (SIXT) and the Evolve S&P 500 CleanBeta Fund (FIVE). (CISION Canada)
Evolve S&P/TSX 60 CleanBeta Fund (SIXT) and the Evolve S&P 500 CleanBeta Fund (FIVE)
The two new ETFs are likely to begin trading on the TSE on Monday, May 10, subject to approvals. The funds aim to generate long-term capital growth by replicating, net of fees and expenses, the performance of the S&P/TSX 60 Index and S&P 500 Index, respectively, while offsetting the carbon footprint of the constituent securities in the portfolio.
“We’ve observed a number of challenges related to ESG investing adoption,” says Raj Lala, President and CEO at Evolve in a statement. “From inconsistent screening methodologies to a narrowing of the investable universe resulting in a change of the overall return profile. We think CleanBeta helps solve many of these issues by providing investors with a simple solution to make traditional indices carbon neutral.”
The S&P/TSX 60 Index is a portfolio index of the large-cap market segment of the Canadian equity market. Meanwhile, the S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities.
To remove the carbon component in the above portfolios, Evolve will use data and analysis provided by Trucost, a division of S&P Global, to determine the carbon exposure of the companies in the indices.
The two ETFs will then use various strategies to neutralize the full carbon footprints of these companies. These strategies could include purchasing and retiring carbon credits.
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