ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • 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
    • 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 VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Future ETFs Channel
  2. GSFP: Great Timing in the Climate-Aware ETF Space
Future ETFs Channel
Share

GSFP: Great Timing in the Climate-Aware ETF Space

Tom LydonSep 29, 2021
2021-09-29

Plenty of investors are often intrigued by new exchange traded funds, but many wait for rookie funds to mature and add assets.

The Goldman Sachs Future Planet Equity ETF (GSFP B-) may be an example of a new ETF that investors might want to consider today, particularly if they’re seeking climate-aware exposure. GSFP debuted in July, and that could amount to good timing because the fund arrives at a moment when interest in climate-aware and carbon-sensitive strategies is rising and some investors are craving clarity on what exactly constitutes climate-aware investing.

Goldman Sachs Future Planet Equity ETF

“Just as governments around the world have spent the past year racing to get the coronavirus pandemic under control, we should be racing to contend with a similarly harmful global event: the threat of climate change. To be sure, a growing number of entities are doing their part. Regulators are ratcheting up efforts to combat climate change, and the investment community is offering more disclosure writes Morningstar analyst Elizabeth Stuart.

While plenty of environmental, social, and governance (ESG) and, more recently, sustainable funds are proving successful, there’s considerable murkiness on what makes a credible climate- or carbon-sensitive fund. GSFP eases that burden for investors by focusing on companies “with solutions to reduce greenhouse gas emissions required across many different activities.”

Said another way, GSFP delivers the goods in terms of simplicity at a time when that trait is exceedingly important to investors prioritizing climate issues.

“Climate conscious funds select or tilt toward companies that consider climate change in their business strategy and therefore are better prepared for the transition to a low-carbon economy. These funds are also well diversified,” notes Stuart. “Low carbon funds seek to invest in companies with reduced carbon intensity and/or carbon footprint relative to a benchmark index. These funds are well diversified.”

Though it’s actively managed, GSFP blends both of those concepts. In fact, active management works in the fund’s favor because that management style ensures that GSFP maintains adequate diversification and some level of carbon/climate purity.

Speaking of diversification, GSFP checks that box by featuring exposure to eight sectors and significant ex-U.S. exposure, as North American stocks account for just 40% of the fund’s weight.

For more news, information, and strategy, visit the Future ETFs Channel.


Content continues below advertisement

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