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VOTE: ESG Activism in an ETF

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  • (1:00) - Engine No. 1 and the Exxon Campaign
  • (7:15) - Engine No. 1 Transform 500 ETF: VOTE
  • (16:00) - How Does VOTE Fit Into Your Portfolio vs. Other ESG Investments
  • (21:45) - How Does Engine No. 1 Choose Which Campaigns To Pursue?
  • Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Yasmin Dahya Bilger, head of ETFs at Engine No. 1, about activist investing through an ETF. The activist investment firm had sent shock waves through Corporate America in May when it targeted Exxon Mobil (XOM - Free Report) and successfully placed three candidates on the board of directors.

The Engine No. 1 Transform 500 ETF (VOTE - Free Report) , which started trading in June, intends to encourage transformational changes in companies through shareholder activism. The fund invests in 500 of the largest US public companies and comes with an expense ratio of just 0.05%.

VOTE is an excelent alternative to standard S&P 500 ETFs for ESG focused investors since they can get a similar financial performance while participating in efforts to bring transformational changes in portfolio companies. Microsoft (MSFT - Free Report) , Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) are the top holdings in the market cap weighted ETF, which has already gathered about $250 million in assets.

Tune in to the podcast to learn more about this unique activist approach to sustainable investing.

Make sure to be on the lookout for the next edition of the ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com