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Robo-Advisor Carbon Collective Launches Climate Solutions ETF
By Justin Kuepper
Sep 21, 2022
Sep 21, 2022
Carbon Collective, a climate change-focused robo-advisor, launched a new climate solutions ETF this week under the ticker symbol "CCSO."
The Carbon Collective Climate Solutions U.S. Equity ETF (CCSO) is an actively-managed ETF that maintains a portfolio of about 200 publicly-traded companies dedicated to solving climate change. These holdings include companies that derive at least half their revenue from climate solutions and span sectors like clean energy, efficient buildings, circular economy, sustainable foods, and industrial electrification.
"Climate change is the most important issue facing the world," said Co-Founder and Chief Investment Officer Zack Stein. "We still have time to avoid the worst case scenarios, but only if we invest capital in climate change solutions that can be adopted and implemented quickly. Companies that are directly involved in climate change solutions have become an important area of the marketplace and investors need a pure-play and low cost way to invest in this space."
While the sustainable investing space has become increasingly competitive over the past few years, most funds take an "exclusionary" approach that merely removes "bad" companies. Of the remaining "inclusionary" funds available to investors, few offer the breadth of the Carbon Collective Climate Solutions ETF. And with no holding accounting for more than 5% of the portfolio's aggregate market capitalization, the fund offers broad exposure across market caps. In addition, the fund's modest 0.35% expense ratio is cheaper than most sustainable and conventional ETFs.
"There are hundreds of companies, both well-known and under-the-radar, that are dedicated to fixing climate change," said Carbon Collective Co-Founder James Regulinski. "Our fund aims to give investors exposure to these companies in one place. Climate change solutions is an asset class and we're excited to help investors gain exposure to this important and rewarding space."
As of September 20, 2022, the fund has seen nearly $500,000 in new investments with 25,000 shares outstanding.