San Francisco-based Newday Impact has debuted its first ETF, an actively managed thematic equity fund targeting companies that are protecting and restoring marine ecosystems.
Listed on NYSE Arca, the Newday Ocean Health ETF (AHOY US) has been brought to market in partnership with New York-based Toroso Investments and white-label ETF issuer Tidal ETF Services.
Maintaining healthy oceans is critical to the planet’s survival due to their role in absorbing CO2 and supplying oxygen as well as providing food for billions of people around the world.
The ETF provides a vehicle for investors wishing to make a positive impact in safeguarding the world’s oceans. According to Newday, the fund is also aligned with several additional UN Sustainable Development Goals including zero hunger, clean water and sanitation, decent work and economic growth, responsible consumption and production, and climate action.
The fund targets firms that are diverting ocean-bound plastic waste, supporting sustainable fisheries, controlling ocean acidification caused by CO2 emissions, and using additional strategies to combat ocean pollution and other threats to marine health.
Eligible stocks are drawn from developed and emerging markets worldwide and from across the market capitalization spectrum.
Newday aims to construct a portfolio consisting of 40 to 60 securities selected based on a bottom-up approach that considers seven fundamental factors: earnings expectations, earnings quality, profitability, operating efficiency, valuation, governance, and risk.
Constituents are weighted to reflect Newday’s highest conviction ideas while capping any single stock at 7.5%.
The ETF comes with an expense ratio of 0.75%.
Newday will donate 5% of the net revenue received from the ETF to EarthEcho International, an environmentally focused non-profit organization established by the grandchildren of legendary oceanic explorer and marine conservation pioneer Jacques-Yves Cousteau.
Commenting on the ETF’s launch, Doug Heske, CEO of Newday Impact, said: “Several sustainable investing ETFs are created by financial services companies that see marketing opportunities in the ESG space but include environmentally irresponsible companies to improve the fund’s performance. Our Ocean Health ETF portfolio is 100% focused on companies with effective, legitimate green agendas based on the knowledge and relationships we’ve built in our five years of impact investing. We believe that affecting positive change can also drive positive financial returns, and this fund is an opportunity for socially conscious investors to make a difference in both areas.”