On Thursday, OneAscent bolstered its lineup of core ETFs with the debut of the OneAscent Small Cap Core ETF (OASC ).
OASC has a net expense ratio of 0.64%. The fund aims to provide returns similar to that of the S&P SmallCap 600 Index.
The index in particular measures the small-cap segment within the greater U.S. equity market. Companies within the index must meet specific inclusion criteria based on liquidity and financial viability.
OneAscent applies a unique screening methodology to track the index. This methodology involves the advisors scrutinizing assets to seek investments that align with OneAscent’s investment philosophy.
Investment Screening
Considered investments may be vetoed if the advisor believes the company either engages in harmful business practices or collects revenue from harmful products. This includes human rights violations, patterns of severe ethics controversies, production and distribution of addictive products, and predatory lending practices, among others.
The screening methodology applied by OneAscent is proprietary, though the prospectus noted that third-party resources may be used for research and data. Should an investment no longer meet OneAscent’s investment philosophy, the fund intends to sell off the security. However, the fund is not explicitly required to do so, according to the fund prospectus.
This is not the first ETF to use OneAscent’s investment philosophy to scrutinize potential securities. Previously, OneAscent launched the OneAscent Large Cap Core ETF (OALC ) and the OneAscent Core Plus Bond ETF (OACP ) , which use a similar investment philosophy to OASC.
To track the index, the fund aims to invest a wide majority of its assets into small-cap equities. Per the fund’s prospectus, OASC aims to target roughly 200 equity securities. It aims to attain an approximate 2% tracking error in replicating the fund’s performance.
The launch of OASC brings the total of OneAscent ETFs listed in the United States to five. These five funds represent more than $450 million in total assets under management.
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