Purpose Investments has launched an actively managed global equity ETF in Canada focusing on companies that demonstrate positive environmental impacts.

The ETF focuses primarily on firms making positive environmental impacts.
The Black Diamond Impact Core Equity Fund (BDIC CN) has been listed on the Toronto Stock Exchange with a management fee of 0.95%.
The fund is sub-advised by Toronto-based Black Diamond Asset Management, a specialist in sustainable investing.
Black Diamond builds the ETF’s portfolio from an initial broad universe of developed and emerging market stocks, excluding firms involved in controversial weapons as well as companies that derive more than 10% of their revenue from tobacco, gambling, adult entertainment, nuclear energy, and fossil fuels.
The firm then utilizes a range of proprietary and third-party ESG analytics to screen for companies with forward-looking sensitivity to sustainability issues. The process involves investigating a firm’s business model, management philosophy, products & services, strategic initiatives, broad ESG ratings, climate scores, and level of ESG transparency.
Portfolio construction focuses on companies making positive impacts on the environment with secondary consideration to societal and governance factors. According to Black Diamond, the forward-looking approach ensures the avoidance of companies susceptible to greenwashing such as traditional mining firms that reduce their net climate impact through carbon offsets.
Examples of eligible types of portfolio constituents include firms involved in renewable energy, pollution prevention technologies, carbon offset projects, electric vehicles, ocean plastic removal, and the circular economy, among other sustainable initiatives.
Final stock selection is driven by a thorough fundamental analysis with particular emphasis on the free-cash-flow and return-on-invested-capital potential of companies’ core operations. The portfolio is diversified across geographic regions, sectors, and individual stocks to manage overall risk.