‘Social Alpha’: Nonprofits Dive Into ETFs

Thursday, January 4, 2018

Ethan Powell is a man on a mission.

As CEO of Impact Shares, the first nonprofit ETF issuer, Powell wants to modernize the way charities—and donors—think about using money to make a difference.

“ETFs are almost the perfect engagement vehicle for nonprofits,” he said. “We can use ETFs to bridge capital to cause.”

In late November, the firm announced partnerships with two prominent charities, the National Association for the Advancement of Colored People (NAACP) and the YWCA Metropolitan Chicago, to bring single-issue socially responsible ETFs to market.

Neither fund has been approved by the SEC yet, but a Q1 2018 launch is expected. And Powell has more ETFs in the works, with both the American Cancer Society and the American Heart Association in talks to launch funds through Impact Shares.

His end goal is to have every social issue—from arts education to veterans affairs—represented by a separately investable ETF, allowing investors to “create a sophisticated, bespoke, socially responsible portfolio to reflect your individual priorities.”

Photo courtesy of reynermedia.

Source: ETF.com (link opens in a new window)

impact investing, nonprofits