Overview
Ethos ESG Investments offers model portfolios that maximize impact on causes that your clients care about, such as Climate Action, Gender Equality, Health and Well-Being, and Inclusive Economies.
Our model portfolios seek to track selected indexes while focusing on companies that Ethos ESG has identified as the most impactful. Ethos ESG rates the impact of companies across 45 causes using metrics such as carbon emissions reduction, development of climate solutions, equity across pay and career opportunities, health and well-being policies, government fines and controversies, and much more. You can learn more about our ESG methodology here.
Model Impact Portfolios
Models will focus on combinations of causes that Ethos ESG has identified as the most popular among investors, based on thousands of Impact Assessments (questionnaires) taken through Ethos ESG. Ethos ESG calls these combinations of causes "Impact Personas" (patent pending):
- Total Impact Champion: focuses on maximum positive impact across all causes on Ethos ESG.
- Earth Defender: seeks maximum positive impact on the planet. Uses data and analysis from the Climate Action, Sustainable Resource Use, and Life on Earth causes.
- Just Planet Advocate: seeks maximum positive impact on both environmental causes (such as Climate Action) and social causes (such as Inclusive Economies and Gender Equality).
- Healthy Life Sustainer: seeks maximum positive impact on Health and Well-Being and Education.
- Social Justice Advocate: seeks maximum positive impact on social justice causes, such as Inclusive Economies, Peace and Justice, and Gender Equality.
More details on model portfolios will be released soon.
Pricing
Pricing for Ethos ESG Model Impact Portfolios will be competitive with other model portfolio solutions. Details to be released soon.
Platforms
Ethos ESG will seek to make our Model Impact Portfolios available on major Turnkey Asset Management Platforms (TAMPs). More information to be released soon.
Important disclosures
Ethos ESG's model impact portfolios use a direct indexing approach to building models, combined with human decision-making from a Portfolio Manager. Direct indexing is typically more appropriate when utilized in a taxable brokerage account and not tax-advantaged accounts. Direct indexing may offer the greatest value to clients who are in a higher tax bracket, have a long-term focus, value ESG-related customization, and/or are able to fund a portfolio with existing securities as opposed to selling all positions and reinvesting in a comingled fund. Indexes are unmanaged. It is not possible to invest directly in an index. As with any investment decision, you should ensure that it aligns with your clients' specific goals, risk tolerance, liquidity needs, tax considerations, and any other factors that might be relevant to their situation.
Keep in mind that investing involves risk. The value of investments will fluctuate over time, and your clients may gain or lose money. Tax-smart (i.e., tax-sensitive) investing techniques, including tax-loss harvesting, are applied in managing certain taxable accounts on a limited basis, at the discretion of the portfolio manager, primarily with respect to determining when assets in a client's account should be bought or sold. Assets contributed may be sold for a taxable gain or loss at any time. There are no guarantees as to the effectiveness of the tax-smart investing techniques applied in serving to reduce or minimize a client's overall tax liabilities, or as to the tax results that may be generated by a given transaction.
Ethos ESG does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. EthosESG cannot guarantee that the information herein is accurate, complete, or timely. Ethos ESG makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.
Footnotes
1. Indicates analysis of a portfolio's potential alignment with global warming in terms of degrees Celsius. Based on Ethos ESG's analysis of factors such as carbon footprint, intensity, reduction, and future commitments