Description

Global X's ETHI offers investors a pathway to a passively managed, worldwide investment portfolio that prioritizes both a reduced carbon footprint and adherence to socially responsible investing (SRI) criteria, enabling individuals to align their financial aspirations with their personal values. The sustainable investing sector is rapidly growing, now valued at over USD 30 trillion globally, with Canada's responsible investment market alone representing approximately CAD 2.9 trillion, or half of the nation's total investment industry. Data from the Responsible Investment Association indicates that considering environmental, social, and governance (ESG) factors often results in similar or even enhanced long-term, risk-adjusted returns compared to traditional investments. ETHI's core objective is to closely track the performance of the Nasdaq Future Global Sustainability Leaders USD Index, net of its operating expenses. This underlying index targets large-cap equity securities from companies identified as global leaders in climate change mitigation, based on their superior carbon efficiency, and that are not significantly involved in operations conflicting with responsible investment standards. To manage currency risk, ETHI consistently hedges the U.S. dollar value of its portfolio back to the Canadian dollar.