Humankind Investments Launches First Sustainable ETF (HKND)
Humankind Investments has launched its first exchange-traded fund, the Humankind US Stock ETF (NYSE Arca: HKND), aimed at socially responsible investments. The ETF focuses on companies contributing positively to society, utilizing a proprietary index that evaluates firms based on their societal impact. Founded by CEO James Katz in 2019, the firm has already attracted over $100 million in assets. The ETF aims to appeal to the growing interest in sustainable investing, with a scoring system that assesses the 'Humankind Value' of companies.
- Launch of Humankind US Stock ETF (HKND) focusing on socially responsible investments.
- Utilizes proprietary Humankind US Equity Index to assess companies' societal contributions.
- Has attracted over $100 million in investor assets since its founding in 2019.
- The fund is a recently organized investment company with limited operating history.
- There is a risk that SRI criteria stocks may underperform the broader stock market.
- No assurance on achieving investment objectives, leading to possible investment losses.
Humankind Investments, a quantitatively driven asset manager specializing in socially responsible investments, announced today the launch of its first exchange traded fund (ETF), the Humankind US Stock ETF (NYSE Arca: HKND). The fund seeks to provide broad exposure to US equities with a focus on companies that contribute the greatest value to society, as measured by Humankind’s proprietary index.
This fund launch marks the first in a series of socially responsible ETF products from Humankind Investments, a firm started by CEO and former Vanguard analyst James Katz in 2019 with the goal of taking a more quantitative and holistic approach to environmental, social, and governance (ESG) investing. Katz and his team bring 50+ years of combined experience to the firm, with previous roles at leading asset management firms and academic institutions. Since its founding, Humankind has attracted over
“Amid the increasingly crowded sustainable investing landscape, we launched Humankind to bring a fresh, unified, scientific approach to the ESG discourse. While many managers develop ESG strategies as just one part of a broader platform of active and passive offerings, Humankind is exclusively focused on socially responsible investing,” said Katz. “This commitment is reflected in the corporate DNA of the Humankind US Stock ETF – to our knowledge it’s the first Registered Investment Company organized as a benefit corporation. But what truly distinguishes our process are the proprietary quantitative models we use to measure societal impact, which incorporate a wider scope of issues than what is typically reflected in traditional financial measurement.”
The Humankind US Stock ETF leverages the firm’s proprietary Humankind US Equity Index to track the top 1,000 US companies that promote healthier, safer, more equitable and longer lives. The Index’s ranking is based on a quantitative analysis of each company’s positive and negative contributions to society as measured by its impact on investors, consumers, employees and citizens - defined as its “Humankind Value.” This pioneering concept is captured by a single dollar figure that is meant to represent a company’s true social and economic value to humanity.
The firm’s Index scoring methodology draws on a combination of nationally recognized third-party data providers, as well as academic research, government data and NGO data to evaluate a universe of domestic US companies. Those that gain inclusion within the Index are weighted based on their Humankind Value, subject to liquidity and diversification constraints.
“We developed our Humankind Value score with the belief that traditional investment analysis, with its typically narrow focus on standalone financial performance, fails to fully capture a company’s ability to remain sustainable and competitive in the long run,” added Katz. “By concentrating our investments in the companies that maximize value across a wider range of key stakeholders and thematic issues, we aim to promote the best possible outcomes for people as both investors and as human beings.”
Sustainable ETFs are increasingly attracting investor interest, becoming a more frequent tool for investors looking for socially conscious investment options, particularly amid the pandemic and growing climate change concerns. In 2020, investors put a record
About Humankind Investments
Humankind Investments, a quantitatively driven investment manager focused on socially responsible investments, was founded on the premise that it would be better for all of us if we widened our perspective and paid close attention to how our investments impacted humankind. Our mission is to give investors concrete and measurable ways to invest in a manner that generates rewards for themselves and for humanity. We offer socially responsible portfolio management services for high net worth individuals and institutional clients as well as exchange traded fund products.
HUMANKIND BENEFIT CORPORATION
HUMANKIND US STOCK ETF
(Ticker: HKND)
Investment Objective
The Humankind US Stock ETF (the “Fund”) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Humankind US Equity Index (the “Index”). The Fund’s investment objective may be changed without the consent of the shareholders of the Fund.
Important Risk Information
Investors should carefully consider the investment objectives, risks, charges and expenses of the Humankind US Stock ETF. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 888-557-6692. The prospectus should be read carefully before investing. The Humankind US Stock ETF is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Humankind Investments, LLC and Northern Lights Distributors, LLC are not affiliated.
Risk Disclosures
The Fund is a recently organized, diversified management investment company with limited operating history.
There is no assurance that the Fund will achieve its investment objective, and you can lose money investing in this Fund. SRI investment risk, which is the chance that stocks screened by the Index Sponsor for SRI criteria generally will underperform the stock market as a whole or that the particular stocks selected for the Index will, in the aggregate, trail returns of other mutual funds or ETFs screened for SRI criteria. In tracking the Index, the Fund may, from time to time, invest more heavily in companies in a particular economic sector or sectors, which would subject the Fund to proportionately higher exposure to the risks of that sector. The profitability of companies in the healthcare sector, as traditionally defined, including healthcare equipment and services companies, may be affected by government regulations and government healthcare programs, increases or decreases in the cost of medical products and services, an increased emphasis on outpatient services, demand for medical products and services and product liability claims, among other factors.
Companies in the technology sector, including information technology companies, may have limited product lines, markets, financial resources or personnel. Investors in small- and medium-sized companies typically take on greater risk and price volatility than they would by investing in larger, more established companies. The value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. Although the Fund’s shares are approved for listing on the NYSE Arca (the “Exchange”), there can be no assurance that an active trading market will develop and be maintained for Fund shares. Although Fund shares are listed for trading on the Exchange, there can be no assurance that an active trading market for such shares will develop or be maintained. The Fund is not actively managed and therefore would not sell an equity security due to current or projected underperformance of a security, industry or sector, unless that security is removed from the Index. 4345-NLD-2/17/2021
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