Hartford Funds today announced the launch of its first ESG-focused exchange-traded fund, Hartford Schroders ESG US Equity ETF, which will be sub-advised by Schroder Investment Management North America Inc. and Schroder Investment Management North America Ltd. The fund seeks long-term capital appreciation by investing in a diversified portfolio of equities and equity-related securities of US companies and in investments that are expected to meet environmental, social, and/or governance criteria (ESG), as identified by the Fund’s sub-advisers. The Fund will seek to achieve a better ESG profile compared to its benchmark, the Russell 1000 Index.
Using a systematic investment approach developed by Schroders, companies in the universe will be assessed quantitatively on their ESG criteria and factor characteristics, including: value, profitability, momentum, and low volatility. ESG measures include, but are not limited to, the strength of environmental practices, climate change impact, and positive stakeholder relationships. The fund will seek to hold a diversified portfolio of US stocks with favorable combinations of ESG and factor exposures. Additionally, the Fund is designed to have less than half the carbon footprint, which is measured by carbon emissions divided by sales, of its benchmark.
HEET is listed on the CBOE BZX Exchange, Inc. and its estimated expense ratio is 0.39%. Ashley Lester, PhD, Head of Systematic Investments at Schroders, will serve as the portfolio manager of the ETF.
–> This post appeared first on Environment + Energy Leader.