New York-based exchange traded funds (ETF) provider Global X Funds has launched the Global X Conscious Companies ETF (KRMA).
The ETF tracks a proprietary index created by Concinnity Advisors, which draws on dozens of sources to identify companies that have demonstrated a long term focus on creating positive outcomes for a variety of stakeholders, including employees, customers, communities, suppliers, and stock and debt holders.
The fund is the 12th in Global X's suite of thematic funds, and the second in its "Values" category.
More than USD6 trillion have been invested into sustainable and responsible investing themes, according to the US Sustainable Investment Forum. With the goal of providing investors a more comprehensive approach to this theme, KRMA's holdings have undergone a three step screening process, which analyses their adherence to the academically-backed Multi-stakeholder Operating System (MsOS). The index is a research-driven approach, which positively identifies companies that operate their businesses in a sustainable and responsible manner.
"Investors are increasingly looking at socially responsible investing not only as a values-driven decision, but also as one that can potentially lead to better long term returns," says Alex Ashby, director of product development at Global X. "Companies that demonstrate a commitment to the Multi-stakeholder Operating System tend to treat each of their stakeholders well and take a longer term view of corporate performance. By partnering with Concinnity Advisors, who are experts in assessing the MsOS approach, our goal was to bring to market a product that identifies the companies that are achieving positive outcomes across all stakeholder groups and are setting the standard for taking a responsible and sustainable approach to operating a business."
