With the latest niche of ESG-screened ETFs booming in popularity, could this lead to more investors incorporating other core values in their investment decision making? Beyond Advisors has proposed a launch with the US Securities and Exchange Commission (SEC) for a vegan exchange-traded fund.
With the expected ticker VEGN, the US Vegan Climate ETF will be tracking the US Vegan Climate Index which was launched by Beyond Advisors in June of this year.
The vegan index screens the Solactive US Large Cap Index which is comprised of 500 of the biggest stocks in the US market. The screening process eliminates any company involved with the farming of animals, animal testing, animals in sports or have a negative impact on the environment/natural habitats.
By eliminating the environmentally negative companies from the index, the US Vegan Climate Index will be producing a significantly smaller carbon footprint and waste generation than the Solactive US Large Cap Index it is tracking.
Planning to launch in January 2019, VEGN is expected to have a total expense ratio of 0.6 per cent.
Having spoken with Benoit Sorel, head of iShares product for EMEA, following the release of iShares' ESG range, he said how there are still gaps within ESG ETFs. A flurry of ETFs similar to VEGN from a range of providers could be expected to come to market very soon.