Good Karma: Global X Adds Another Thematic ESG ETF

Adding to what is becoming a rapidly growing lineup of thematic exchange-traded funds, several of which adhere to Environmental, Social and Corporate Governance (ESG) principles, Global X introduced the Global X Conscious Companies ETF KRMA on Wednesday.

KRMA “tracks a proprietary index created by Concinnity Advisors, which draws on dozens of sources to identify companies that have demonstrated a long term focus on creating positive outcomes for a variety of stakeholders, including employees, customers, communities, suppliers, and stock and debt holders,” according to a statement issued by New York-based Global X.

Building On A Good Thing

KRMA is the “first ETF to utilize the Multi- stakeholder Operating System (MsOS), KRMA offers exposure to companies achieving positive outcomes for 5 key stakeholders: Customers, Employees, Suppliers, Stock & Debt Holders, and Local Communities,” according to Global X.

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The new ETF's largest sector weight is 20.5 percent to consumer discretionary. KRMA also features weights of more than 17 percent to industrial and technology stocks. Consumer staples and healthcare names combine for over 22 percent of the new ETF's weight.

KRMA holds 115 stocks, none of which command weights more than 1.16 percent. The new ETF's top 10 holdings include J M Smucker Co SJM, AT&T Inc. T and Clorox Co CLX.

Thematic ETFs Growing For Global X

KRMA is Global X's twelfth thematic ETF and the second in the issuer's values category.

“More than $6 trillion have been invested into sustainable & responsible investing themes, according to the US Sustainable Investment Forum,” added Global X.

In May, Global X introduced the Global X Longevity Thematic ETF LNGR and the Global X Health & Wellness Thematic ETF BFIT, launches that were preceded by the debut of the Global X Millennials Thematic ETF MILN.

KRMA charges 0.43 percent per year, or $43 per $10,000 invested.