Huntington Asset Advisors, a subsidiary of Ohio-based Huntington National Bank, has made its debut in the US ETF space with the launch, on the NYSE Arca, of the Huntington EcoLogical Strategy ETF (HECO).
The actively managed Huntington EcoLogical Strategy ETF (HECO) is the first of two planned ETFs under the newly launched ‘Huntington Strategy Shares’ brand.
HECO, the first of two initial planned ETFs under the company’s newly minted ‘Huntington Strategy Shares’ brand, is an actively managed ETF that focuses on sustainable and environmentally-friendly companies.
The ETF has a goal of capital appreciation and will focus on ecologically-focused companies and products, which are positioned to take advantage of continuing changes in laws, consumer behaviour and business investments. The ETF holds stocks from companies large and small across a widely-diversified set of industries. It does not seek to replicate a specified index.
These companies demonstrate environmental stewardship and provide products and services that advance green practices and show evidence of sustainability. With this approach, the ETF may be more correlated to market indices, like the S&P 500, than specific green funds that target clean tech or alternative energy, which may be more limited in scope.
“Many green funds emphasise nascent technologies like wind and solar because they are clean, without regard to whether that’s a logical investment,” said Randy Bateman, Huntington’s chief investment officer. “Our approach looks at those opportunities, but then applies logic around whether or not that company is producing products that are affordable by broad markets.”
“Within Huntington, we have an established team of experts whose goal is to select the top environmentally-friendly investments for this ETF,” added Brian Salerno, the fund’s manager. “Companies with these sustainably green characteristics tend to be more seasoned, have profitable business models, and are usually good environmental stewards.”
The fund has a net expense ratio of 0.95%.