The Responsible Investing Channel
It’s been a big year for ESG funds as increasingly more investors and advisors prioritize investing in environmentally conscious businesses and practices. State Street Global Advisors, one of the industry’s biggest firms, offers a variety of ESG ETF options for investors, with strategies from divestment to a focus on governance and gender equity. The following are the top five ESG-focused funds for SSGA by flows for 2021.
- The SPDR S&P 500 ESG ETF (EFIV) has brought in $286.83 million in flows year-to-date. EFIV takes a holistic approach to ESG investing by focusing on the environmental aspect of ESG and sustainability across the social and governance practices of the companies it invests in. The fund tracks the S&P 500 ESG Index, which selects from top companies that meet ESG criteria within the S&P 500 while also adhering to the sector weights of the S&P 500 Index and is exclusionary of some industries, such as tobacco. EFIV carries an expense ratio of 0.10%.
- The SPDR S&P Kensho Clean Power ETF (CNRG) has brought in $243.19 million in flows year-to-date. CNRG invests in clean energy and tracks the performance of the S&P Kensho Clean Power Index, a benchmark that combines artificial intelligence with a quantitative weighting methodology to invest in global stocks that drive innovation in the clean energy sector concerning both products and services. CNRG carries an expense ratio of 0.45%.
- The SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX) has brought in $228.08 million in flows year-to-date. SPYX tracks the S&P 500 Fossil Fuel Free Index, a benchmark of companies within the S&P 500 that are “fossil fuel free,” defined as companies that don’t own fossil fuel reserves (thermal coal reserves and coal reserve byproducts, as well as oil or gas reserves). The fund still has minor allocations to fossil fuel companies, but without exposure to companies actually holding the physical oil, coal, or gas reserves, the fund’s energy allocation is much reduced. SPYX carries an expense ratio of 0.20%.
- The SPDR MSCI EAFE Fossil Fuel Free ETF (EFAX) has brought in $91.58 million in flows year-to-date. EFAX seeks to track the MSCI EAFE ex Fossil Fuels Index, an index that is designed to measure the performance of securities that are within the MSCI EAFE Index and are fossil fuel reserves free. The fund invests in large- and mid-cap companies in developed markets in Europen, Australasian, and Asian countries, and excluding Canada and the U.S. The fund carries an expense ratio of 0.20%.
- The SPDR SSGA Gender Diversity Index ETF (SHE) has brought in $80.32 million in flows year-to-date. SHE offers data-driven exposure to companies with the highest diversity amongst leadership positions within their industries. SHE follows the SSGA Gender Diversity Index, an index that tracks large-cap U.S. companies exhibiting gender diversity within their senior leadership.
For more news, information, and strategy, visit the ESG Channel.
