Exchange-traded funds (ETFs) can serve many different purposes and investor profiles. Last week marked the launch of a new ETF focused on diversity and inclusion: LGBTQ + ESG100 ETF (NASDAQ:LGBT), operated by LGBTQ Loyalty Holdings. In the press release announcing the news, the company said that the fund “offers investors access to U.S. large-cap equity securities of companies that have demonstrated a commitment to LGBTQ diversity and inclusion, along with ESG compliance, as part of their corporate social responsibility fundamental mandate.”
As its name implies, there are 100 holdings in the fund. And they cover a broad array of industries, with information technology, consumer discretionary, and health care making up nearly two-thirds of the holdings. Most stocks account for no more than 1% of the fund’s weight and only the top four account for more than 2% each. Tesla (NASDAQ:TSLA) is the top holding with a weight of 5.9%, followed by Amazon (NASDAQ:AMZN) at 4.1%, Apple (NASDAQ:AAPL) is 3.7%, and Microsoft (NASDAQ:MSFT) is in the fourth spot at 2.9%.
To be considered for inclusion in the fund, a company needs to be among the top 500 U.S. companies in terms of market cap. And they also need a 100/100 score on the annual Corporate Equality Index. This evaluation is done by a human rights organization.
For investors who are focused on compliance or diversity, the ETF can offer a great way to balance both personal needs and preferences while still owning shares of some of the top companies in the world.