What are Impact Shares ETFs?

Impact Shares ETFs are a series of exchange-traded funds designed to provide investors with exposure to companies that aim to make a positive social or environmental impact alongside financial returns.

How are the companies selected for Impact Shares ETFs?

The companies included in Impact Shares ETFs are typically selected based on specific environmental, social, and governance (ESG) criteria. These criteria may vary depending on the specific focus of each ETF, such as gender equality, clean energy, or sustainable development.

What are some examples of Impact Shares ETFs?

Some examples of Impact Shares ETFs include the Impact Shares NAACP Minority Empowerment ETF (NACP), the Impact Shares Sustainable Development Goals Global Equity ETF (SDGA), and the Impact Shares YWCA Women's Empowerment ETF (WOMN).

What are the advantages of investing in Impact Shares ETFs?

Investing in Impact Shares ETFs allows individuals to align their investment choices with their personal values. These ETFs provide exposure to companies that strive for positive change while offering the benefits of diversification, liquidity, and professional management.

How can I evaluate the performance of Impact Shares ETFs?

You can evaluate the performance of Impact Shares ETFs by assessing their historical returns, expense ratios, tracking error (the variance between the ETF's performance and its underlying index), and assets under management. It's also important to consider the ETF's investment strategy and the transparency of its holdings.

5 min read

By Ron Koren, ETF Insider

What are the best Impact Shares ETFs?

If you're looking for investment options that align with your values and have a positive societal impact, Impact Shares ETFs can be a great choice. This article explores the top Impact Shares ETFs available, highlighting their potential for generating both financial returns and positive social or environmental outcomes. Discover a range of investment opportunities that allow you to make a difference while growing your portfolio.

Understanding Impact Shares and their Significance

Impact Shares ETFs are investment funds that aim to generate positive social and environmental impact alongside financial returns. These ETFs focus on companies that prioritize sustainability, social responsibility, and ethical practices. The keyword "Impact Shares" represents a growing trend in the investment world, where investors seek to align their financial goals with their values.

One noteworthy ETF in the Impact Shares space is the Impact Shares NAACP Minority Empowerment ETF (NACP). NACP seeks to track the Morningstar Minority Empowerment Index, which includes companies that demonstrate strong racial and ethnic diversity practices. It provides exposure to companies that promote equal opportunities and advancement for minority individuals, making a positive impact on society.

Comparing NACP with other similar real ETFs, we find the SPDR SSGA Gender Diversity Index ETF (SHE). While NACP focuses on racial and ethnic diversity, SHE emphasizes gender diversity within companies. Both ETFs aim to create social change through investment strategies, but they target different aspects of diversity.

Investing in Sustainability: Impact Shares Sustainable Development Goals ETF

The Impact Shares Sustainable Development Goals ETF (SDGA) is another ETF worth considering for those interested in making a positive impact through their investments. SDGA tracks the Morningstar Global Markets Sustainability Index, which includes companies that contribute to achieving the United Nations Sustainable Development Goals (SDGs). The SDGs cover a wide range of areas, including poverty reduction, climate action, and gender equality, among others.

By investing in SDGA, individuals can support companies actively working towards sustainable development. The ETF offers exposure to global companies that align with the SDGs, allowing investors to contribute to positive change on a global scale.

NACP overlap What are the best Impact Shares ETFs?

Environmental Focus: Impact Shares Global Water Sustainability ETF

The Impact Shares Global Water Sustainability ETF (H2O) focuses specifically on the environmental aspect of sustainability. H2O seeks to track the Morningstar Global Water Index, which includes companies involved in water infrastructure, conservation, and treatment. Investing in H2O allows individuals to support companies addressing one of the world's most critical environmental challenges – water scarcity and management.

Comparatively, another real ETF in the environmental sustainability space is the iShares Global Clean Energy ETF (ICLN). ICLN focuses on clean and renewable energy companies, contributing to the transition away from fossil fuels. While H2O concentrates on water-related sustainability, ICLN emphasizes the importance of clean energy for a more sustainable future.

Unlocking the Potential: Impact Shares LGBT: Leadership ETF

The Impact Shares LGBT: Leadership ETF (LGBT) is designed for investors who prioritize supporting companies that foster LGBT: inclusion and equality. LGBT tracks the performance of the Morningstar LGBT Equality Index, which includes companies with LGBT-friendly workplace policies and practices. By investing in LGBT, individuals can help drive positive change and advance equality for the LGBT: community.

It is essential to note that these ETFs are just a few examples of the available Impact Shares options. Investors interested in making a positive impact through their investments should conduct thorough research and consider their own financial goals and values.

Conclusion

Investing in Impact Shares ETFs provides individuals with the opportunity to align their financial goals with their values. By selecting ETFs like NACP, SDGA, H2O, or LGBT, investors can support companies that prioritize racial and ethnic diversity, sustainable development goals, water sustainability, and LGBT: inclusion, respectively.

Remember, investing involves risks, and it is important to carefully evaluate investment options based on your own financial circumstances and risk tolerance. This article does not provide any investment advisory services but aims to provide information on Impact Shares ETFs for educational purposes.

Disclaimer: The content provided in this article is for informational purposes only and should not be considered as investment advice. Always do your own research and consult with a qualified financial advisor before making any investment decisions.

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FAQ

What are Impact Shares ETFs?
Impact Shares ETFs are a series of exchange-traded funds designed to provide investors with exposure to companies that aim to make a positive social or environmental impact alongside financial returns.
How are the companies selected for Impact Shares ETFs?
The companies included in Impact Shares ETFs are typically selected based on specific environmental, social, and governance (ESG) criteria. These criteria may vary depending on the specific focus of each ETF, such as gender equality, clean energy, or sustainable development.
What are some examples of Impact Shares ETFs?
Some examples of Impact Shares ETFs include the Impact Shares NAACP Minority Empowerment ETF (NACP), the Impact Shares Sustainable Development Goals Global Equity ETF (SDGA), and the Impact Shares YWCA Women's Empowerment ETF (WOMN).
What are the advantages of investing in Impact Shares ETFs?
Investing in Impact Shares ETFs allows individuals to align their investment choices with their personal values. These ETFs provide exposure to companies that strive for positive change while offering the benefits of diversification, liquidity, and professional management.
How can I evaluate the performance of Impact Shares ETFs?
You can evaluate the performance of Impact Shares ETFs by assessing their historical returns, expense ratios, tracking error (the variance between the ETF's performance and its underlying index), and assets under management. It's also important to consider the ETF's investment strategy and the transparency of its holdings.

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