Even as flows into environmental, social and governance ETFs are slowing, Emerge is introducing its first set of active sustainable ETFs with a twist — each fund will be overseen by women.
On Sept. 8, the investment management firm will launch five different ESG exchange-traded funds, with versions listed on both the Cboe BZX Exchange in the US and the NEO Exchange in Canada. The funds will invest in equity securities that exclude certain categories, according to prospectus documents, such as gambling, adult entertainment and chemical weapons.
When asked why Emerge was introducing these 10 funds while equity markets are limping and so-called anti-ESG funds are gaining traction, the firm's CEO and founder Lisa Langley countered with, "Why not now?"
"We are taking a practical and real-world approach to sustainability," Langley said in a phone interview.
"ESG and sustainability work requires expertise and dedicated resources," she added. "I think all the attention given to this area recently, albeit some negative, is because it does require those resources and it is expensive." Emerge's new funds will each have an expense ratio of 0.85%.
Toronto-based Emerge is Canada's first and only women-owned investment fund firm, with assets under management of C$120 million ($91 million U.S.) at Emerge Canada and $800 million at Emerge Capital, its U.S. arm.
Its five funds, built with Emerge's proprietary ESG framework, will be listed in both the U.S. and Canada. They are the Emerge EMPWR Sustainable Dividend Equity ETF (US ticker EMCA), Emerge EMPWR Sustainable Select Growth Equity ETF (EMGC), Emerge EMPWR Sustainable Global Core Equity ETF (EMZA), Emerge EMPWR Sustainable Emerging Markets Equity ETF (EMCH) and Emerge EMPWR Unified Sustainable Equity ETF (EMPW).
