The U.S. Vegan Climate ETF is the world's first fund specializing in vegan investments. It invests in environmentally friendly and cruelty-free companies, such as Microsoft, Apple, and Meta (formerly Facebook). The expense ratio of the fund is 0.60%. As of December 11, 2023, the ETF had approximately $80.74 million in assets.
Basics
In an era where exchange-traded funds (ETFs) abound, the diversity of options continues to surge annually. The ETF landscape is now saturated with many investment opportunities, encompassing thousands of funds. These funds are strategically designed to provide investors with cost-effective portfolios comprising assets often connected by themes, trends, or other shared attributes.
U.S. Vegan Climate ETF (VEGN) Addresses Investor Concerns
Addressing concerns related to climate change and animal welfare, the U.S. Vegan Climate ETF emerges as a solution for conscientious investors. Offered by Beyond Investing and Beyond Advisors IC, the fund finds its roots with Beyond Investing, listing a Florida mailbox as its location, while Beyond Advisors IC operates from Jersey.
The U.S. Vegan Climate ETF is dedicated to addressing the concerns of vegans, animal lovers, and environmentalists. The fund, falling into the category of socially responsible investments, starts with the Solactive U.S. Large Cap Index, consisting of around 500 companies. It meticulously excludes entities involved in animal-related activities, fossil fuels, environmental degradation, tobacco, military, defense, and human rights abuses.
As of September 30, 2023, the U.S. Vegan Climate ETF included 248 companies, with top holdings such as NVIDIA (NVDA), TESLA (TSLA), and UnitedHealth Group (UNH). The fund's assets amounted to approximately $80.74 million as of December 11, 2023. Managed by a three-person team with ETF experience from Charles Schwab, BlackRock, and State Street, the fund reflects a commitment to socially responsible investing.
Investment Expenses for U.S. Vegan Climate ETF
Investors opting for the U.S. Vegan Climate ETF should be prepared to incur a higher cost, as is common with vegan alternatives. The expense ratio is 0.60%, surpassing the 0.39% average for socially responsible ETFs. Despite the elevated prices, the fund's emphasis on social responsibility attracts many eager investors, particularly a substantial portion of millennials seeking to align their investments with their values. The collective assets of about 207 socially responsible ETFs amount to approximately $94 billion, underscoring the serious consideration investors give to this approach.
Conclusion
The U.S. Vegan Climate ETF is a groundbreaking venture, pioneering the world's first fund dedicated to vegan investments. With a focus on environmentally friendly and cruelty-free companies like Microsoft, Apple, and Meta, the fund sets a new standard for socially responsible investing. Despite its expense ratio of 0.60%, higher than the average for socially responsible ETFs, the U.S. Vegan Climate ETF has garnered approximately $80.74 million in assets. This underscores its appeal to investors, especially a significant proportion of millennials, who prioritize aligning their investments with ethical values in this evolving landscape of socially responsible funds.