Horizons ETFs Management has launched the Horizons Global Sustainability Leaders Index ETF (ETHI) on the Toronto Stock Exchange (TSX).
ETHI is Horizons ETFs’ first Socially Responsible Investing (SRI) -themed fund. ETHI seeks to replicate, to the extent possible, the performance of the Nasdaq Future Global Sustainability Leaders Index (the “Index”), net of expenses. ETHI gives investors the opportunity to access a genuinely low-carbon-footprint and SRI-screened passive global investment portfolio.
ETHI will provide exposure to 100 of the world’s largest companies (by market capitalisation) that have demonstrated a core commitment to environmentally sustainable business practices.
Using a rigorous methodology, the Index screens for qualifying equities based on the following factors:
• Companies must not be engaged in activities considered inconsistent with SRI principles, including fossil fuel production, armaments, tobacco, gambling, animal cruelty and more;
• Companies must either have a carbon impact at least 60% lower than their industry’s average or be engaged in activities that can help reduce carbon use by other industries, and;
• Companies are selected from developed markets and must meet market cap and liquidity requirements.
“There are more and more ethically conscious Canadians now looking to ‘put their money where their mouth is’ – aligning their investments with a belief in a better future for our planet,” says Steve Hawkins, President and CEO of Horizons ETFs. “We believe ETHI provides a good balance between buying 100 of the world’s largest and most successful companies that have also demonstrated a key commitment to ethical and environmentally sustainable business practices. We’re proud to introduce our first responsible investing product aimed at mitigating climate change and to empower Canadians to invest according to their principles.”