Toronto-based Horizons ETFs Management (Canada) Inc. has launched its first responsible investing (RI)-themed fund, Horizons Global Sustainability Leaders Index ETF, the company announced Thursday.
Units of the fund began trading Thursday on the Toronto Stock Exchange, under the ticker symbol ETHI.
The new fund tracks the Nasdaq Future Global Sustainability Leaders Index. It provides exposure to 100 of the world’s largest companies committed to sustainable business practices.
“ETHI gives investors the opportunity to access a genuinely low-carbon-footprint and SRI-screened passive global investment portfolio,” Horizons says in a news release.
Qualifying equities must meet certain criteria, including not being engaged in fossil fuel production, armaments, tobacco, gambling, animal cruelty and other activities not considered consistent with RI principles. Companies must also have a carbon footprint 60% lower than industry average or be making a contribution to the reduction of carbon emissions. Horizons says these companies are selected from developed markets and must meet market cap and liquidity requirements.
“There are more and more ethically conscious Canadians now looking to ‘put their money where their mouth is’ — aligning their investments with a belief in a better future for our planet,” Steve Hawkins, president and CEO of Horizons ETFs, says in a statement. “We believe ETHI provides a good balance between buying 100 of the world’s largest and most successful companies that have also demonstrated a key commitment to ethical and environmentally sustainable business practices. We’re proud to introduce our first responsible investing product aimed at mitigating climate change and to empower Canadians to invest according to their principles.”
Horizons ETFs is a recent member of the Toronto-based Responsible Investment Association, which advocates for responsible investing practices.