Change Finance Launches CHGX, Impact Investing ETF
Change Finance, a majority women-run asset manager, announced in October the launch of its first ETF. The Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free ETF (CHGX) is the only ETF that uses diversified impact screens to look beyond excluding fossil fuels, taking a comprehensive approach to socially responsible investing. The first truly fossil fuel-free ETF utilizes diversified impact screens.
CHGX’s methodology is informed by the United Nations Sustainable Development Goals (SDGs). These internationally agreed-upon standards seek to eradicate poverty, protect planetary life support, and achieve lasting peace and dignity for humanity. Change Finance, devoted to providing impact-focused, performance-oriented investments, uses the SDGs to craft investment options for customers who care about impact and income.
“CHGX is a new chapter in investing,” said Donna Morton, Change Finance CEO. “Our investors want alignment with what they care about, without sacrificing performance. Fossil fuel-free is essential, but CHGX then goes further, divesting not only from companies who dig up, refine, burn and service fossil fuels, but also from companies that are serious polluters, that have significant human or labor rights violations, and that fail to meet a variety of other social and environmental standards. No other ETF does this.”
CHGX goes beyond fossil fuel-free screens as well. “We reject companies that produce pesticides or military weapons, engage in corrupt business practices or have exploitative relationships with labor and Indigenous people,” Andrew Rodriguez, Change Finance President, added. “We move money from harm to healing—harnessing our collective experience in social change. The result is an ETF that invests in companies built for the 21st century. This sort of smart investing can solve some of the worst social and environmental issues, and we believe it could serve as a core holding in any investor’s portfolio. Think of us as inspired by the values of “Occupy,” but powered by the acumen of Wall Street.”
A growing body of academic research suggests that ESG (Environmental, Social and Governance) factors can also be predictive of outperformance. “We see ‘investing to turn a profit’ versus ‘investing with your personal values’ as a false trade-off,” said Dorrit Lowsen, Change Finance COO. “You don’t have to choose between the two. There’s ample evidence that doing good for people and planet is actually just plain good business.”
CHGX’s index begins with the 1,000 largest U.S.-listed companies and applies a series of ESG screens to exclude companies that are deemed to be “bad actors,” whether they operate in the oil, gas, coal, or tobacco industries among others, or have engaged in any sort of business malpractice. The fund has an expense ratio of 0.75%, and intends to spur changes in companies through shareholder advocacy. CHGX will track the performance of the Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free Index.
“After applying these screens, what you’re left with are good global corporate citizens—large cap, U.S.-based companies representing a range of sectors,” said Hunter Lovins, Change Finance Executive Vice President of Impact, “We believe these are some of the best companies with long-term business models. They are conscientious regarding their impact on employees, supply chains, people, and planet. They do what they can to reduce their carbon footprint, implement inclusive employment practices, harness the wisdom of women, and seek to do good in the communities where they do business. They are what I want to own.”
About Change Finance Change Finance is committed to transforming the financial landscape by providing impact investing products that are good for people, planet, and investors. The firm is the only majority woman-owned and managed financial company offering ETFs that are truly fossil free, clean, and responsible. Change Finance’s approach to investing emphasizes investing in service to life, which it implements through a “divest from harm, invest in healing” methodology, grounded in the United Nations Sustainable Development Goals.
We believe finance is the mother of all human systems. Where capital flows, momentum follows. As investors make statements with which funds they choose to invest in, corporations are primed to listen and respond. In this way, Change Finance’s suite of funds enables investors to drive impact, creating an economy in service to life through financial activism. For more information, please visit www.changefinanceETF.com
The fund’s investment objectives, risks, charges and expenses must be carefully before investing. The prospectus contains this and other important information about the investment company. It may obtained by calling 1-303-339-0524 or emailing info@change-finance.com . Read it carefully before investing.
Investing involves risk. Principal loss is possible. Investments in Real Estate Investment Trusts (REITs) involve additional risks such as declines in the value of real estate and increased susceptibility to adverse economic or regulatory developments. The social, governance, and/or environmental policy of the Fund could cause it to make or avoid investment that could result in the portfolio underperforming similar funds that do not have such policies. The Fund is a recently organized, diversified management investment company with no operating history. As a result, prospective investors have no track record on which to base their investment decisions. The Fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not at NAV) and are not individual redeemed from the Fund. Brokerage commissions will reduce returns. The performance of the funds may diverge from that of the index. Because the funds may employ a representative sampling strategy and may also invest in securities that are not included in the index, the funds may experience tracking error to a greater extent than funds that seek to replicate an index. The funds are not actively managed and may be affected by a general decline in market segments related to the index.
The Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free ETF is distributed by Quasar Distributors, LLC.