ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • 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
  • Research
    • 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 of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Education Channel
  2. QQMG Can Keep It Green
ETF Education Channel
Share

QQMG Can Keep It Green

Tom LydonJun 08, 2022
2022-06-08

One of the widely mentioned criticisms of environmental, social. and governance (ESG) funds is greenwashing, or sprucing up a fund in such a fashion that its ESG credentials are overstated.

Greenwashing is also prompting investors, many of whom are enthusiastic about ESG, to ponder if the funds they are embracing are green enough. The Invesco ESG Nasdaq 100 ETF (QQMG B-) is a prime example of an ESG exchange traded fund that’s “green enough” and then some.

QQMG follows the Nasdaq-100 ESG Index, which is the ESG counterpart to the widely observed Nasdaq-100 Index (NDX). That’s solid DNA when it comes to offering investors legitimate ESG credentials.

“Investors poured $69.2 billion into ESG funds (also known as sustainable or impact funds) last year, an annual record, according to Morningstar,” reported Greg Iacurci for CNBC. “These funds come in a variety of flavors. Some may seek to promote gender or racial equality, invest in green-energy technology or avoid fossil-fuel, tobacco, or gun companies, for example.”

QQMG’s lineage is something of an advantage. The Nasdaq-100 Index is a collection of the 100 largest Nasdaq-listed stocks by market value, excluding the financial services sector. That keeps QQMG investors away from potential offenders in that sector.

Additionally, the Nasdaq-100 is, historically, a growth-heavy index. To that end, the index rarely includes energy and utility stocks — two groups that could encounter ESG problems. Today, neither sector is represented in QQMG.

QQMG, which debuted last October and holds 95 stocks, addresses the issue of fluidity that’s apparent in some active ESG strategies. Simply because a fund purports to be ESG doesn’t mean that it is.

“Some fund managers may ‘integrate’ ESG values when picking where to invest money, but it may only play a supporting (and not a central) role. Conversely, other managers have an explicit ESG mandate that acts as the linchpin of their investment decisions,” according to CNBC.

For its part, QQMG avoids greenwashing with a straightforward methodology that includes excluding companies from the following industries: “alcohol, cannabis, controversial weapons, gambling, military weapons, nuclear power, oil and gas, and tobacco.”

That methodology is paired with United Nations Global Compact principles, which further enhances QQMG’s ESG resume. In addition to excluding energy, financial services, and utility stocks, QQMG’s environmental credentials are enhanced by the fact that the ETF features no exposure to materials and real estate stocks — two groups that are still in the early innings of their sustainability enhancing journeys.

For more news, information, and strategy, visit the ETF Education Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

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