Environmentally conscious online investment advisor Carbon Collective Investing has made its ETF debut with the launch of an actively managed US equity fund targeting companies delivering solutions to address climate change.
The ETF targets US companies developing solutions to address climate change.
The Carbon Collective Climate Solutions US Equity ETF (CCSO US) has been listed on Nasdaq with an expense ratio of 0.35%.
The fund invests in approximately 200 companies from across the US market capitalization spectrum within sectors such as clean energy, electrified transportation, efficient buildings, circular economy, sustainable foods, and industrial electrification.
Carbon Collective conducts extensive searches to identify companies that are building solutions within these sectors using a variety of sources including public filings, internet searches, industry research, and third-party data providers.
Only firms that earn at least 50% of their revenue from operations linked to providing climate solutions are included in the portfolio. The fund is rebalanced on an annual basis.
Zach Stein, co-Founder and CIO, Carbon Collective Investing, said: “Climate change is the most important issue facing the world. We still have time to avoid the worst-case scenarios, but only if we invest capital in climate change solutions that can be adopted and implemented quickly. Companies that are directly involved in climate change solutions have become an important area of the marketplace and investors need a pure-play and low-cost way to invest in this space.”
James Regulinski, co-Founder of Carbon Collective Investing, added: “There are hundreds of companies, both well-known and under-the-radar, that are dedicated to fixing climate change. Our fund aims to give investors exposure to these companies in one place. Climate change solutions is an asset class, and we’re excited to help investors gain exposure to this important and rewarding space.”