Personal Finance | June 14, 2023

Targeting solutions with impact ETFs, ‘cut carbon notes’ and other new investment products

Dennis Price
ImpactAlpha Editor

Dennis Price

ImpactAlpha, Jun. 14 – A new family of exchange-traded funds will align around companies that derive the bulk of their revenues from solutions for the Sustainable Development Goals.

Five ETFs from London-based investment platform CIRCA5000 will invest in companies targeting green energy and technology (ticker: C5KG), sustainable food and biodiversity (C5KF), clean water and waste (C5KW), social and economic empowerment (C5KE), and health and wellbeing (C5KH).

Underpinning the investment products are newly released indices from Montreal-based impact analytics firm impak.

Impak’s analysis, which aligns with the norms of the Impact Management Project, goes beyond ESG to assess a company’s contribution to solutions.

Impak says that investing five years ago in a basket of the most impactful companies would have yielded a total return of 93% versus a 55% return for the S&P 500. The CIRCA5000 ETFs launched on the London Stock Exchange last week for institutional investors.

Impact mutual fund

Separately, the Nia Impact Solutions Fund (NIAGX), a mutual fund launched last year to invest in companies that contribute to environmental sustainability and social justice, is now available at Charles Schwab.

Among its top three holdings: Danone, First Solar and Gilead Sciences. The fund returned 3.16% through Feb. 28, while the MSCI ACWI IMI index returned 2.60%.

Cut carbon notes

The proceeds of Cut Carbon Notes, a new investment-grade, fixed-income security from Calvert Impact, will provide low-cost, long-term funding for energy efficiency improvements to commercial, industrial, multi-family, and non-profit buildings with the goal of reducing carbon emissions.

The notes, which earn investors between 5% and 6.5%, are available to retail and institutional investors.

Launching a financial product we should know about? Drop us a note at [email protected].