AXS Investments has launched a new actively managed ETF providing exposure to companies poised to be leaders in the unfolding sustainable economy.
Greg Bassuk, CEO of AXS Investments.
The AXS Green Alpha ETF (NXTE US) has been listed on NYSE Arca with an expense ratio of 1.00%.
The fund is sub-advised by Green Alpha Investments, a sustainable investment specialist known for its proprietary ‘Next Economy’ philosophy and investment strategies.
The Next Economy approach goes beyond relying on ESG indices and scoring systems, seeking to identify companies at the intersection of high impact and high return potential. Eligible firms include innovators that are improving economic productivity or addressing core global systemic risks such as the climate crisis, natural resource degradation and scarcity, and human disease.
Green Alpha uses its expertise to screen for companies globally that are deriving the majority of their revenues from, or allocating the majority of their capital expenditures to, four key impact areas: improving economic productivity (through digitalization and automation, AI & machine learning, and communications networks); renewable energy (solar, wind, geothermal, and hydroelectric); improving waste-to-value supply chains (by reducing the extraction of primary geological resources or enhancing products’ life cycle); and advancing a more equitable distribution of wealth in society (by promoting broader ownership of the means of production and better social cohesion).
From the pool of screened securities, Green Alpha selects companies that are reasonably valued and possess the potential for above-average growth based on a range of fundamental metrics such as revenue growth and forward-looking expectations, profit margins, balance sheet health, and cash flow strength, as well as an evaluation of the firm’s management and competitive advantages.
Commenting on the new listing, Greg Bassuk, CEO of AXS Investments, said: “We are excited to partner with Green Alpha to launch the industry’s first-ever Next Economy ETF. Given the important diversifying benefits this strategy can add to investment portfolios, combined with Green Alpha’s decades-long expertise in this area, we are thrilled to bring this Next Economy ETF to the broader investing public.”