AdvisorShares, an exchange traded fund provider known for its actively managed investment products, announced its intent to launch an active ETF that follows sustainable investment themes and provides long-term capital appreciation while showing a low correlation to traditional stock market indices.
According to a press release, the AdvisorShares Global Echo ETF (GIVE) will begin trading on May 24, 2012. The fund will have four portfolio managers allocating to sustainable fixed-income, long-only equity and alternative long/short trend-following strategies over a full market cycle.
Sustainable investment-themed opportunities include those that take into economic, environmental and technology considerations, along with a variety of social factors. These opportunities include those that focus on water, clean energy, community development, innovation and other sustainable themes across asset classes.
The ETF will hold U.S. and foreign equity securities, fixed income securities and other ETFs. Up to 65% of the of its assets in domestic and foreign fixed-income securities.
The fund will also directly support the Global Echo Foundation, a 501(c)(3) charitable foundation that helps world communities including social issues that affect women and children, environmental conservation and social entrepreneurship.
GIVE has an expense ratio of 1.70% of which 0.40% will go directly to the Global Echo Foundation.
"We feel we're entering an exciting new chapter by not only adding another attractive and broadly diversified product to our existing suite of actively-managed ETFs, but providing a truly one-of-a-kind sustainability focused investment strategy with an innovative approach to combat some of our planet's biggest challenges," Noah Hamman, CEO of AdvisorShares, said in the press release. "We believe our partnership with Philippe Cousteau, Jr. and the Global Echo Foundation will allow investors to realize positive returns on their investment capital while still making a charitable impact for the betterment of the earth."
Max Chen contributed to this article.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.