Horizons ETFs Management (Canada) Inc. launched a new ETF on Tuesday that seeks to generate income through corporate bonds screened under environmental, social and governance (ESG) criteria.
The Horizons Active ESG Corporate Bond ETF invests in a portfolio of debt (including debt-like securities) of Canadian and U.S. companies directly, or through investments in securities of other investment funds, the Toronto-based firm said in a release.
The ETF will invest in issuers with an ESG score in the top third percentile and that limit exposure to the fossil fuel industry, and exclude issuers with more than 10% of earnings from adult entertainment, alcohol, cannabis, firearms, gambling, military contracting and/or tobacco.
The actively-managed ETF is sub-advised by Fiera Capital Corp. and has a management fee of 0.55%. It began trading on the Toronto Stock Exchange on Tuesday.