Invest in solutions to the UN's Sustainable Development Goals via an easy-to-use mobile app.
Most investors look toward environmental, social, and governance (ESG) investments to align their portfolios with their values. But unfortunately, many of these investments exclude "bad" companies without doubling down on "good" companies. Impact investing goes further by investing in solutions to many of the world's most pressing problems.
Let's look at NewDay Impact's origins, market approach, and why you might want to invest in their portfolios.
Who's behind NewDay?
Doug Heske founded NewDay to unleash the younger generations' vigor for deep and lasting change by providing them with a mechanism for engagement that's more grassroots. The team views it as a "participatory impact engagement platform" that makes it easy for almost any investor to make an impact with their retirement portfolios.
NewDay's investment approach
NewDay is a financial advisor with portfolios built around the United Nation's Sustainable Development Goals (SDGs). Rather than investing in broad market indexes, the advisor's portfolios are overweight in companies trying to solve specific issues. And in other cases, the advisor leverages its voting power to achieve desired outcomes.
For example, the company's Clean Water Portfolio invests primarily in companies working to provide safe and affordable drinking water and those that develop technologies or manage improvements in water efficiency, intensity, recycling, and sanitation. While holding some conventional securities, the portfolio is overweight in impactful firms.
In addition to its managed portfolios, the advisor launched the NewDay Ocean Health ETF (AHOY) as its first ETF offering. The ETF invests in companies that enhance ocean health through exclusionary screening, ESG research, and fundamental analysis. The company also donates 5% of its net revenue to ocean health and other SDG causes.
Should you invest with NewDay?
NewDay Impact's strategies go beyond exclusionary ESG with in-depth fundamental research and weighting toward solutions to specific UN Sustainable Development Goals. As a result, investors that want to make a bigger impact on causes they care about may wish to consider its portfolios over conventional ESG funds or advisors.
NewDay Impact provides investment management services with fees ranging from 0.50% to 0.75%. The assets under management fees are 0.75% for balances under $1 million, while assets under advisement fees are 0.40% for assets under $1 million. These fees cover research, investment advice, implementation, and other overhead costs.
Finally, the company has a $100 minimum per portfolio strategy and an easy-to-use mobile app that makes the platform approachable and easy to use. In addition, the company provides education and insights to help investors keep abreast of the latest impact investment strategies and ideas, providing additional value to their clients.
The bottom line
NewDay is an investment advisor focusing on high-impact portfolios (and a newly launched ETF). With its $100 minimum, reasonable expense ratio, and easy-to-use app, the platform provides an all-in-one solution for those looking to align their portfolio with their values.
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Dec 04, 2023
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Impact FocusRenewable Energy
- Impact portfolios addressing issues from climate change to clean water to diversity and inclusion.
- Custom portfolios to reach your environmental, social, and financial goals.