Socially Responsible Investing: Huntington EcoLogical Strategy ETF
While most social responsible managers tend to focus on a variety of ESG screens, a common theme is environmental issues and how firms react to the concept of sustainability. The often ignored Huntington EcoLogical Strategy ETF (HECO) taps into the various firms making efforts on this front.
However, this is not an ETF of solar and wind power producers.
Sponsor Huntington Bancshares (HBAN) defines “ecologically focused companies” as firms that have positioned their businesses to respond to increased environmental legislation, cultural shifts toward environmentally conscious consumption and capital investments in environmentally oriented projects.
The actively managed fund picks out what the managers believe are the best targets in the previously mentioned MSCI KLD 400 Social Index. Currently, the fund holds 56 different firms including Starbucks (SBUX) and chipmaker Texas Instruments (TXN).
That active focus has produced some hefty returns as well.
HECO managed to return nearly 30% in 2013 and is up nearly 4% year-to-date. Expenses for the ETF are bit on the high side, however, currently at 0.95%.