Dealflow | July 18, 2018

Impact Shares’ minority empowerment ETF launches to the public

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, July 18 – Impact Shares, a non-profit investment manager based in Dallas, partnered with the NAACP late last year to develop an investment vehicle to simultaneously create higher-impact mainstream investment opportunities and create a funding stream for the NAACP.

The exchange traded fund, which trades with the ticker NACP, is going live on the New York Stock Exchange. Impact Shares is also partnering with the YWCA to launch a women-focused ETF.

“The goal is to have a platform that’s a barometer for social prioritization,” Impact Shares’ Ethan Powell told ImpactAlpha. “If you look at Black Lives Matter and #MeToo, this is the natural evolution of those movements into the boardroom and public policy debate.” 

The NAACP ETF was developed in partnership with corporate ESG ratings agency Sustainalytics and investment research firm Morningstar. The NAACP identifies 10 screening critiera that reflect companies’ support for and commitment to minority employees and communities. Sustainalytics then identified the 200 most highly ranked publicly traded companies against those screening criteria, and Morningstar selected the stocks and weighed the portfolio using the Russell 1000 index. All proceeds from the ETF will be directed back to the NAACP.

The “NACP” ETF launch follows the NAACP’s annual convention this week in San Antonio. Powell said that in addition to its partnerships with the NAACP and YWCA, ImpactShares is exploring ETF development around the U.S. opioid crisis, infrastructure development in low-income countries and even gun control.

“This is a platform for [corporate] social engagement,” Powell said.“The social screens are all public, and the methodology is transparent. It brings corporations to the table and shows how they can be leaders on these issues.”