If you are among the 99.9% literate people who know what an ETF is, please skip the following explanation…
What is an Exchange Traded Fund (ETF)?
An exchange-traded fund (ETF) is a pooled investment security that acts like a mutual fund. Typically, an ETF will track a specific index, sector, commodity, or other asset, but unlike mutual fund, ETFs can be bought or sold on a stock exchange in the same way that common stocks can. An ETF can be structured to track anything from the price of an individual commodity to a large and diverse collection of securities. ETFs can even be structured to track specific investment strategies.
The first ETF is the SPDR S&P 500 ETF (SPY), monitor S&P 500 Indexand remains an actively traded ETF today.
Now, back to our story…
Guests “Now that’s funny isn’t itEur” by David Middleton
Climate ETF on the brink of failure months after UN summit launch
FT (Financial Times) seemed very emotional about being quoted. So I won’t quote anything other than the title in this post.
Impact Sharing MSCI Global Climate Select ETF (NTZO) was launched with great fanfare during COP 26 in Glasgow…
UN and partners launch climate-focused ETF
By Adva Saldinger // November 8, 2021The United Nation and exchange-traded funds seem like an unusual combination. But on Wednesday, nonprofit ETF manager Impact Shares, in partnership with United Nations Capital Development Fundlaunched a climate-focused ETF.
Impact Shares MSCI Global Climate Select ETF, or NTZO ETF, will be managed by Impact Shares, backed by The Rockefeller Foundation. It includes companies that meet a range of stringent climate and other criteria.
Unlike some other climate ETFs, NTZO completely excludes all companies that own or profit from fossil fuels. It also requires participants to comply Rule Later United Nations Global Compact and prohibit any activity that profits from weapons, firearms, alcohol, tobacco or palm oil.
[…]
NTZO has clearly attracted less than net interest from investors, accumulated less than $2 million, and is likely to close in March according to Financial Times.
Why is NTZO about to disappear?
NTZO is purpose-built to track the performance of MSCI Climate Roadmap Choice Index ACWI (“Indexing”). The Index is built from the ACWI MSCI Index by excluding securities based on several criteria related to ESG and Climate Change, followed by an optimization-based approach that aims to:
*Increase exposure to companies involved in the opportunities associated with the transition to a low-carbon economy.
*Increase the share of companies with science-based emissions reduction targets.
*Follow the decarbonization trajectory: reduce the weighted average carbon intensity of the Index by at least 7% YoY and 30% of the MSCI ACWI Relative Index.
*Significantly Improves Index ESG Profile: The index’s ESG score is at least 25% higher (weighted Mean ESG Score of index components) than the MSCI ACWI Index.
[…]
Here is a comparison with the Proshares Ultra Oil & Gas ETF (DIG):
NTZO avoids all stocks that DIG participates in long term.
IHS Markit Ltd? I interpret 3d seismic surveys on the IHS platform and download good logs from the IHS database. Among the many upstream oil and gas related products and services that IHS offers are:
I use many IHS products and services every day I go to work in the oil and gas industry. Of course, all of these products and services run on Microsoft’s operating systems. And pretty much every map and section I make as Adobe PDF. Do you think NTZO fund managers realize that the oil and gas industry benefits from IHS, Microsoft, Adobe and many other tech companies they invest in? Just ask Greenpeace…
How tech companies are helping to reap huge oil profits from climate devastation
Larry the Cable Guy would say:
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