To coincide with National Giving Day, Impact Shares has filed for its first two exchange traded funds (ETFs), which are being developed in tandem with The National Association for the Advancement of Colored People (NAACP) and the YWCA Metropolitan Chicago.
The concept was originally developed with support from The Rockefeller Foundation’s Zero Gap initiative.
Expected to launch in early 2018, the Minority Empowerment ETF and the Women’s Empowerment ETF, reflect the respective organisations’ values and social mission.
The Impact Shares NAACP Minority Empowerment ETF (NYSE Arca: NACP), will invest in companies that empower minorities through hiring, pay and promotion practices as well as their products and services.
“NACP offers socially conscious investors the opportunity to allocate capital to incentivize companies to change their business practices and, in some cases, their products and services, to promote minority communities in the United States,” says Marvin Owens, Senior Director of the NAACP Economic Department. “By investing in NACP, we can reward companies that empower minorities and give our members another tool to have their voices heard.”
The Impact Shares YWCA Women’s Empowerment ETF (WOMN), will hold stocks of companies that empower women, including promoting women’s health and women’s advancement initiatives.
“WOMN, a collaboration with index provider Equileap, offers an investment solution that will look for companies that are leaders in empowering women both in and out of the workplace,” says Dorri McWhorter, CEO of YWCA Metropolitan Chicago. “We hope female and male investors alike seize the opportunity to encourage companies to more proactively address the issues impacting women today.”
“Giving Tuesday is the perfect time to announce Impact Shares’ unique partnerships with such highly regarded leaders known for empowering minorities and celebrating diversity,” says Ethan Powell, CEO of Impact Shares. “We are committed to working with nonprofit organisations that want to harness the power of capital markets to catalyse change in corporate America while providing investors with an equity market rate of return.”
To achieve its mission, Impact Shares, itself a 501(c)(3) charity, will donate the net advisory proceeds it receives from each ETF back to the related partner nonprofit, creating meaningful social impact engagement with corporate America and providing the investing public with more targeted, credible social impact investing options.
“In addition to our partnerships with NAACP and YWCA, we will be expanding our product suite with ETFs that appeal to investors who care deeply about causes including access to affordable healthcare and housing, a variety of specific health issues, the arts and veterans,” Powell adds.