The Social Impact SRI portfolio is similar to our Broad Impact SRI portfolio, but further promotes the social pillar of ESG investing by allocating to three stock ETFs which specifically focus on diversity and inclusion: Impact Shares NAACP Minority Empowerment ETF (NACP), SPDR SSGA Gender Diversity Index ETF (SHE), and Academy Veteran Impact ETF (VETZ).
By investing in NACP, investors are allocating more of their money to companies with a better track record of social equity as defined by the NAACP while maintaining market-like risk and strong diversification.
SHE is a US Stock ETF that allows investors to invest in more female-led companies compared to the broader market. By investing in SHE, investors are allocating more of their money to companies that have demonstrated greater gender diversity within senior leadership than other firms in their sector.
VETZ is the first of its kind: a publicly-traded ETF that mainly invests in loans to active and retired U.S. service members, and the survivors of fallen veterans. Unlike SHE and NACP, which are comprised of stocks, VETZ is an all-bond fund. This allows investors with a lower appetite for investing risk to maintain exposure to socially responsible ETFs.
To learn more about the portfolio construction of the Social Impact portfolio, review our full SRI portfolio methodology.
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