Socially Responsible Investing: AdvisorShares Global Echo ETF
While the previous three SRI ETFs track big passive indexes, AdvisorShares Global Echo ETF (GIVE) is a little bit different.
The fund is actively managed as a “core” solution, meaning it holds both stocks as well as fixed income instruments and bonds. All of these holdings are scrutinized for various socially responsible investing and ESG requirements before being added to GIVE’s underlying portfolio. However, since it is actively managed, these holdings can and do change on a daily basis. The ETF also holds a nearly 4.2% weighting in the previously mentioned DSI ETF.
Here’s where GIVE gets interesting.
The ETF charges a monster 1.61% in expenses. However, 0.40% of that is donated to Philippe Cousteau Jr.’s — Jacques Cousteau’s grandson — Global Echo Foundation. The foundation’s mission is to provide funding solutions “to many of the challenges facing the world community from social issues impacting women and children to environmental conservation.”
Unfortunately, that hasn’t done much to bring investors to the fund, as GIVE has only attracted around$9 million in assets so far. Most likely, because investors in the SRI ETF don’t actually get claim that tax-deduction from the donation.