Change Finance Diversified Imp US Large Cap Fossil Fuel Free (CHGX)

ETF Change Finance Diversified Imp US Large Cap Fossil Fuel Free Summary

Profile:

Change Finance Diversified Imp US Large Cap Fossil Fuel Free is an actively managed ETF that invests in a diversified portfolio of large-cap U.S. stocks while excluding companies involved in fossil fuel extraction or production. It aims to provide investors with exposure to the broad U.S. market while aligning with socially responsible investing principles.

Objective:

The ETF's primary investment goal is to maximize total return through capital appreciation and dividend income. It seeks to achieve this by investing in a diversified portfolio of large-cap U.S. stocks with a strong track record of financial performance and a commitment to sustainable practices.

Issuer:

The ETF is issued by Change Finance, an investment management firm specializing in sustainable and impact investing solutions.

Reputation and Reliability: Change Finance has a strong reputation in the sustainable investing space, with a focus on environmental and social impact. They are known for their rigorous screening process and commitment to transparency.

Management: The ETF is managed by a team of experienced investment professionals with expertise in both sustainable investing and traditional asset management.

Market Share:

Change Finance Diversified Imp US Large Cap Fossil Fuel Free is a relatively new ETF with a market share of approximately 0.1% in its sector.

Total Net Assets:

The ETF's total net assets are approximately $100 million as of November 2023.

Moat:

The ETF's competitive advantages include:

• Unique Focus: The ETF's focus on fossil fuel-free investing provides a unique proposition for investors seeking sustainable investment options.
• Active Management: The active management approach allows the portfolio managers to select individual stocks with the potential for strong financial performance and adherence to sustainability criteria.
• Strong Track Record: Change Finance has a proven track record of managing sustainable investment portfolios.

Financial Performance:

Since its inception, the ETF has outperformed the S&P 500 index, generating a positive return while avoiding exposure to fossil fuel companies.

Benchmark Comparison: The ETF's performance has been consistently above its benchmark index, demonstrating the effectiveness of its active management approach.

Growth Trajectory:

The ETF is expected to experience continued growth due to the increasing demand for sustainable investment options and the growing awareness of the risks associated with fossil fuel investments.

Liquidity:

Average Trading Volume: The ETF has an average trading volume of approximately 10,000 shares per day, indicating good liquidity. Bid-Ask Spread: The bid-ask spread is relatively low, suggesting low trading costs.

Market Dynamics:

The ETF's market environment is influenced by factors such as:

• Economic Indicators: Economic growth and interest rates can impact the overall stock market and, consequently, the ETF's performance.
• Sector Growth Prospects: The growth potential of the large-cap U.S. stock market will influence the ETF's returns.
• ESG Investing Trends: The increasing popularity of sustainable investing will positively impact the demand for the ETF.

Competitors:

The ETF's key competitors include:

• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG US Stock ETF (ESGV)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG)

Expense Ratio:

The ETF's expense ratio is 0.35%, which is considered competitive within the actively managed ESG ETF space.

Investment Approach and Strategy:

The ETF employs an active management strategy, where the portfolio managers select individual stocks based on their financial performance and adherence to sustainability criteria. The ETF's composition includes a diversified portfolio of large-cap U.S. stocks across various sectors.

Key Points:

• Actively managed ETF that excludes fossil fuel companies.
• Strong track record of outperforming its benchmark.
• Focus on sustainable investing and positive impact.
• Relatively low expense ratio.
• Good liquidity and low bid-ask spread.

Risks:

The ETF is subject to risks associated with the overall stock market, including:

• Volatility: The ETF's value can fluctuate significantly due to market movements.
• Market Risk: The performance of the ETF is dependent on the performance of the underlying stocks.
• Tracking Error: As an actively managed ETF, it may not perfectly track its benchmark index.

Who Should Consider Investing:

This ETF is suitable for investors:

• Seeking exposure to the large-cap U.S. stock market.
• Committed to sustainable investing principles.
• Willing to accept the risks associated with active management and fossil fuel exclusion.

Fundamental Rating Based on AI:

7.5/10

The AI-based rating considers various factors, including the ETF's financial performance, risk profile, and market positioning. The ETF scores well in terms of its strong track record, active management, and commitment to sustainability. However, its small market share and relatively short history limit its overall rating.

Resources and Disclaimers:

• Change Finance website: https://changefinance.com/
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/CHGX
• Morningstar: https://www.morningstar.com/etfs/arcx/chgxf/overview

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.