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

Overview

The Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free ETF (CHGX) seeks to provide investment results that correspond generally to the performance, before fees and expenses, of the Change Finance U.S. Large Cap Diversified Impact Index. The fund invests in a diversified portfolio of U.S. large-cap companies that meet certain environmental, social, and governance (ESG) criteria, while excluding companies involved in fossil fuels.

Reputation and Reliability

Change Finance is a smaller, specialized ETF issuer focused on responsible and impact investing. Their reputation is growing within the ESG space.

Management Expertise

Change Finance focuses on ETFs incorporating ESG principles, suggesting expertise in this area.

Goal

To provide investment results that closely correspond, before fees and expenses, to the performance of the Change Finance U.S. Large Cap Diversified Impact Index.

Investment Approach and Strategy

Strategy: Tracks the Change Finance U.S. Large Cap Diversified Impact Index, a rules-based index designed to provide exposure to U.S. large-cap companies that meet specific ESG standards, excluding fossil fuel companies.

Composition Primarily holds stocks of U.S. large-cap companies that meet certain ESG and fossil fuel free criteria. Sector allocations are generally similar to the broader large-cap market but with ESG screens applied.

Market Share: CHGX has a relatively small market share compared to larger, more established ESG ETFs.

Total Net Assets (AUM): 12590000

Key Competitors

• SPDR S&P 500 ESG ETF (EFIV)
• iShares ESG Aware MSCI USA ETF (ESGU)
• Xtrackers S&P 500 ESG ETF (SNPE)

Competitive Landscape

The ESG ETF market is competitive, with a few large players dominating. CHGX differentiates itself by focusing on fossil fuel free investments, appealing to investors with specific environmental concerns. However, its smaller AUM and relatively new status place it at a disadvantage compared to larger, more liquid competitors. Advantages include a targeted ESG approach, while disadvantages include lower liquidity and brand recognition.

Historical Performance: Historical performance data needs to be sourced from financial data providers. (Data not available)

Benchmark Comparison: Benchmark Comparison data needs to be sourced from financial data providers. (Data not available)

Expense Ratio: 0.49

Average Trading Volume

CHGX's average trading volume is moderate, indicating adequate but not exceptional liquidity.

Bid-Ask Spread

The bid-ask spread is moderate, reflecting its liquidity.

Market Environment Factors

Economic indicators, sector growth prospects, and investor sentiment towards ESG investing influence CHGX's performance. Increasing awareness of climate change and sustainable investing can drive demand for fossil fuel free funds.

Growth Trajectory

Growth depends on increased adoption of ESG investing, particularly the desire to exclude fossil fuels. Changes in ESG regulations and reporting standards could also impact its growth.

Competitive Edge

CHGX's competitive edge lies in its specific focus on fossil fuel free investing within the large-cap universe. This allows it to cater to investors with strong convictions regarding fossil fuel divestment. Its diversified approach to ESG factors beyond fossil fuels provides a broader appeal. However, its smaller size and newer status require it to build brand recognition and attract assets to increase liquidity.

Volatility

Volatility will mirror the underlying market volatility, with a risk of underperformance vs. a non-ESG focused large cap fund in certain market environments.

Market Risk

Market risk stems from potential declines in the overall stock market, sector-specific risks, and the possibility of underperformance compared to non-ESG funds due to its investment constraints.

Ideal Investor Profile

The ideal investor is socially responsible, and seeks diversification across the U.S. large-cap market, and is concerned about climate change and wishes to exclude fossil fuel companies from their investment portfolio.

Market Risk

CHGX is suitable for long-term investors and passive index followers looking for socially responsible investment options. It is a good fit for investors who want to align their investments with their values.

Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free ETF (CHGX) offers a diversified investment in US large-cap companies with an ESG and fossil-fuel-free focus. The ETF tracks the Change Finance U.S. Large Cap Diversified Impact Index and has a moderate expense ratio. CHGX is most suitable for long-term, socially responsible investors who prioritize sustainability and fossil fuel divestment. However, potential investors should be aware of its smaller AUM, relative to larger competitors, as well as potential trade-offs in performance compared to non-ESG funds.

• EFIV
• ESGU
• SNPE
• DSI
• CRBN

Data Sources:

• Change Finance Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Investment decisions should be based on individual financial circumstances and consultation with a qualified financial advisor. Market share data may be based on estimates and may not reflect precise figures.