ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Dual Impact Channel
  2. The Index Really Matters With This ESG ETF
Dual Impact Channel
Share

The Index Really Matters With This ESG ETF

Tom LydonJan 23, 2023
2023-01-23

Advisors and experienced investors know that when it comes to index funds and passively managed exchange traded funds, understanding the underlying index’s methodology is a critical element in charting outcomes.

That’s particularly true in the world of environmental, social, and governance (ESG) investing where indexes and funds are sprouting up at a rapid pace. Many of these products aren’t mirror images of each other, indicating that some ESG ETFs may have indexing advantages over rivals. The IQ Candriam ESG US Large Cap Equity ETF (IQSU B+) could be part of that group.

IQSU follows the IQ Candriam ESG US Equity Index, and that’s relevant because Candriam, a subsidiary of New York Life, has one of the most extensive histories of ESG commitment among asset managers. That’s a critical feature at a time when some investors are critiquing the ESG voting records of some asset managers and fund issuers, asserting that some of these firms are happy to introduce ESG funds while displaying corporate voting records that run contrary to ESG objectives.

“The asset managers, for their part, say there are now too many shareholder resolutions, and that they’re too prescriptive. Companies should be allowed to decide for themselves how to achieve their goals, especially those they’re already working towards, asset managers say,” reported Quartz.

Recently, ShareAction, which is a U.K.-based firm with expertise in corporate ESG campaigns, published a report examining how asset managers vote when facing ESG resolutions proposed by other investors.

“On average, the four largest asset managers supported 20% of resolutions in our 2022 assessment, compared to 32% in 2021,” noted ShareAction. “Because of the size of their holdings, these asset managers have a particularly large influence on corporate behaviour through their voting decisions. The $27 trillion in assets they manage is equivalent to the market capitalisation of the 250 largest companies in the US.”

Fortunately for investors considering IQSU, Candriam isn’t part of that quartet. In fact, the company behind IQSU’s underlying index scores particularly well when it comes to ESG voting records. ShareAction assigns Candriam an overall 98%. That score includes environmental and social scores of 98% and 97%, respectively, and a pay and politics score of 100%.

Based on the ShareAction rankings, just four asset managers score ahead of Candriam, and the provider of IQSU’s index places ahead of all major U.S.-based asset managers. Those are potentially notable points for investors mulling the ETF.

For more news, information, and analysis, visit the Dual Impact Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X