The time has come to honor and thank military veterans and gratitude is being extended in many ways. Veterans Day observation is replete with parade and salute to service, vets’ freebies and meal deals as well as job creations. Many companies recruit U.S. veterans and deploy their skillset in profit maximization.
This activity is part of social-responsiveness. Per InsightShares, veterans possess several qualities that make them vital contributors to the workforce. VIQTORY made Military Friendly ratings in 2003 to inspire companies “to invest in programs to recruit, retain and advance veterans, and to help veterans connect to employment opportunities” (read: 5 Sector ETFs to Sizzle on Upbeat October Jobs Data).
Why “Hiring Our Heroes”?
Per an article published on bizjournals.com, veterans normally have a variety of cross-functional skills — “from computer, IT and systems expertise to hands-on experience in engineering and logistics.” They also own way stronger leadership skills than their private sector peers. A 2016 study by the U.S. Chamber of Commerce Foundation's Hiring Our Heroes initiative showed that veterans are a top recruiting target for American companies.
Investors who want to dive into the socially responsible theme may consider the below-mentioned funds for investment. After all, 70% of all investors are interested in socially responsible investing, while more than 80% of millennials seek to make socially responsible investment decisions, per the data provided by Morningstar.
Pacer Military Times Best Employers ETF (VETS
The fund tracks the Military Times Best for Vets Index, which includes the U.S. listed stocks of companies that have been involved in the Best for Vets List for the last three consecutive years, have a minimum market capitalization of $200 million. Hormel Foods (2.70%), Express Scripts Holding Co (2.62%) and Walmart (2.58%) are the top three holdings of the fund.
Financials get the highest exposure with about 21.75% focus, followed by 18.49% exposure to industrials, 18.4% to Information Technology and 13% to consumer discretionary. The fund comprises 36 stocks and charges 60 bps in fees.
InsightShares Patriotic Employers ETF
The ETF is the product of a collaboration between UBS and VIQTORY. The underlying Military Veterans Index looks to track the price movements of U.S. companies with policies, practices and outcomes that support the employment of U.S. veterans (see all Total Market (U.S.) ETFs here).
In total, the fund holds 105 stocks. No stock accounts for more than 1.24% of the fund. It puts double-digit weight in four sectors, namely Industrials, Financials, Healthcare and Information Technology. About 87% focus goes to large-cap stocks, while 12.54% is invested in mid caps. The fund charges 65 bps in fees.
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