Just in time for Pride Month, Wall Street has the first LGBTQ-focused ETF.
ProcureAM is new in partnership with LGBTQ Loyalty Holdings LGBTQ100 ESG ETF this week. The first fund of its kind uses LGBTQ community data to identify the top 100 companies that best meet the Group’s environmental, social and corporate governance (ESG) goals.The fund contains the following names Estee Lauder, Facebook, Starbucks, PayPal, visa More.
In an interview with CNBCETF edgeTom Lydon, CEO of ETF Trends, gave an outlook for the fund.
“At the right time, there are really strong groups to support this, and I think these will be important and important to future developments,” he said Wednesday, pointing to fund supporters. Former Congressman Barney Frank and Martina Navratilova, a former professional tennis player and advocate of transgender and gay rights.
“People will pay attention,” Rydon added. “I think it will be a significant trigger.”
In the same interview, Bob Tal, co-founder of Procure Holdings behind the fund, shared an insider’s perspective on the fund. He has a unique approach used to select securities within the fund. I explained. This is different from traditional funds that use only quantitative analysis.
“The structure started with over 1000 securities, and then the first thing we did was to use UN standards to screen them for inclusiveness and ESG,” he said. “The members of the community are so loyal that this indicator has an emotional component.”
In the same ETF Edge interview, WallacBeth Capital’s managing director Andrew McOrmond said this was due to a new wave of investors. He states that new investors are younger and emphasize the crossroads between social governance goals and investment. These young people are also ranked higher in these top companies.
“If these companies aren’t excluded and support diverse workplaces, they will attract talented people,” he said. “A good person means that the company is doing well.”
This is a positive feedback loop. When young people join a company that enhances ESG value, that company’s performance improves, and as a result, its stock price rises in the long run.
“I think this is the basis for driving this issue in the long run,” McCormond said.
The new LGBTQ ETF hits the market and Pride Month meets Wall Street
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