On Wednesday, Eventide Asset Management rolled out its second ETF that aligns its portfolio with Christian values. The firm benchmarks the actively managed Eventide US Market ETF (NYSE Arca: EUSM) to the Bloomberg U.S. 3000 Total Return Index. It selects companies from across the market capitalization spectrum based on expectations around performance and their moral values. The fund has an expense ratio of 0.39%.
At launch, EUSM held roughly 160 securities. Its top stocks included Nvidia, Broadcom, Home Depot, Eli Lilly and American Express.
Eventide, in managing EUSM, combines fundamental research with its proprietary Business 360® methodology. This methodology provides a quantitative system for evaluating companies based on their alignment with the principles of the Christian religion. According to Eventide, the Business 360 process considers each company in light of 50 different ethical criteria with an eye to determining to what degree a company contributes to the well-being of humanity.
A Company With a Mission
The firm notes on its website that it looks to ensure its investments are in companies that benefit relevant stakeholders. These include each company’s customers, employees, and supply chain; the communities in which it operates; the environment; and society.
The prospectus outlines five core values driving Eventide’s moral quality evaluations. They encompass respecting the value and freedom of all people; demonstrating a concern for justice and peace; promoting family and community; exhibiting responsible management practices; and practicing environmental stewardship.
Once a company has been evaluated, Eventide determines whether it will avoid investing in it, embrace it by including it in its portfolio, or engage with it with the goal of bringing about change within the organization.
Eventide launched its first ETF at the end of September, the Eventide High Dividend ETF (ELCV), which also invests in U.S. equities. It primarily seeks to deliver a high dividend yield to its investors. The fund has roughly $37 million in assets under management.
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