A New Suite of Active ETFs Offers International SRI Exposure

OneAscent’s actively-managed ETFs use a proprietary process to select portfolio components. This process involves an extensive fundamental analysis that dives deep into a company’s business model, stakeholder policies, and overall community impact. The goal is to go beyond surface-level screening and apply more rigorous selection criteria.

 

The fund managers begin by applying a values-based screening that includes:
 

• Involvement in abortion
• Production or distribution of addictive products
• Predatory lending practices
• Human rights violations
• Patterns of severe ethical controversies

Then, the managers seek out companies that promote specific values, including:
 

• Unmet and underserved marketplace needs
• Purposeful vocations and meaningful work* Fostering vibrant communities
• Embracing a partnership and spirit of collaboration
• Cultivating natural resources
• Enhancing well-being and human experience

Finally, the fund managers evaluate companies that pass both screens within the context of a natural corporate lifecycle and use quantitative and fundamental ‘bottom-up’ research to identify those capable of generating sustainable returns on investment.

OneAscent’s actively-managed approach provides managers with a lot of flexibility when building portfolios.

Currently, the OneAscent International Equity ETF (OAIM) holds about 40 mostly international equities concentrated in industrials (24%), financial services (21%), and technology (19%). The portfolio’s largest holdings include DBS Group Holdings Ltd. (4%), Nestle SA (4%), Element Fleet Management Corp. (4%), and KBC Group (4%).

The OneAscent Emerging Markets ETF (OAEM) also holds a portfolio of about 40 international equities concentrated in technology (37%), financial services (29%), and consumer defensive (12%). The largest holdings include Samsung Electronics Co. (7%), PT Bank Rakyat Indonesia (5%), and Taiwan Semiconductor Manufacturing Co. (5%).

The ETFs have adjusted expense ratios of 0.95% and 1.25%, respectively.

Investors have many options when building socially responsible portfolios. When choosing between these options, investors should consider the exclusionary or inclusionary screening criteria, expense ratios and fees, and the overall portfolio’s risk/reward profile.

Some popular international SRI-focused ETFs include:

 

Data as of November 3, 2022.

OneAscent’s new SRI-focused international ETFs help investors who want to align their portfolio with their values add global exposure to their portfolios. Unlike many other U.S. or globally-focused SRI ETFs, OneAscent’s ETFs offer specific exposure to international or emerging markets through an SRI lens.

Take a look at our recently launched Model Portfolios to see how you can rebalance your portfolio.