Seven actively managed mutual funds were also launched in September, excluding any new share classes. These funds added a total of $25.8 million in net assets, valued as of September 30th, with five funds reporting zero assets as of the same date. Offering multiple share classes that in some instances apply sales charges, sustainable mutual fund expense ratios range from 49 bps to 151 bps. This is in line with the 93 bps average actively managed sustainable mutual fund expense ratio applicable to existing funds. Unlike the newly launched ETFs in September, their sustainable investing practices are not as broad and varied as their ETF counterparts. (Reference Table 1).

Table 1: Sustainable Mutual Funds Lunched in September 2021

Fund NameMgmt. TypeTNA (M$)ER (bps)Sustainable Investing Approach^
ETRACS 2x Leveraged MSCI USA ESG Focus TR Index ETN due September 15, 2061 UBS AGPassively managed23.495ESG integration combined with certain exclusions that apply, such as tobacco, controversial weapons, fossil fuel extraction and thermal coal companies.  
FlexShares® ESG & Climate High Yield Corporate Core Index Fund Investment Adviser and Portfolio Managers. Northern Trust Investments, IncPassively managed49.923ESG and climate-related considerations determined on the basis of (1) financially material ESG issues, (2) how a company is managing its ESG risks relative to peers, (3) corporate governance considerations and (4) an assessment of a company’s ability to mitigate the risk of transition to a lower carbon economy.  In addition, certain companies are excluded from consideration, for example tobacco and weapons, to mention just a few. 
FlexShares® ESG & Climate US Large Cap Core Index Fund    Passively managed2.59Same as above.
FlexShares® ESG & Climate Developed Markets ex-US Core Index FundPassively managed512Same as above.
FlexShares® ESG & Climate Investment Grade Corporate Core Index FundActively managed49.212Same as above.
Global X Solar ETF Global X Management Company LLC.Passively managed2.350Thematic investing combined with an exclusionary approach pursuant to which any existing or potential constituent is excluded if it does not meet the labor, human rights, environmental, and anti-corruption standards as defined by the United Nations Global Compact Principles.
Global X Wind Energy ETF Global X Management Company LLC.Passively managed2.550Same as above. 
Hartford Sustainable Income ETF Hartford Funds Management Company, LLC./Wellington Management. Actively managed12.454Seeks to invest in companies that demonstrate a commitment to sustainable practices. These issuers include: (1) issuers that can have a positive social and/or environmental impact; (2) issuers that are leaders or demonstrating improvement in environmental, social and/or governance characteristics, and/or (3) issuers that the manager engages with on ESG characteristics in order to improve ESG disclosure and best practices. A corporate issuer’s carbon exposure is also evaluated. 
Janus Henderson Sustainable & Impact Core Bond ETF Janus Capital Management LLCActively managed49.639Same as above.
Janus Henderson Net Zero Transition Resources ETFActively managed47.760Same as above.
Janus Henderson International Sustainable Equity ETFActively managed46.760Same as above.
Janus Henderson U.S. Sustainable Equity ETFActively managed47.855Same as above. 
Nuveen ESG Dividend ETF Nuveen Fund Advisors, LLC/ Teachers Advisors, LLCPassively managed4.925ESG integration combined with certain exclusions, including alcohol production, tobacco production, nuclear power, gambling, and weapons and firearm production. Also excluded are companies that exceed certain carbon-based ownership and emissions thresholds.
ProShares S&P Kensho Cleantech ETF ProShare Advisors Passively managed4.158Thematic investing.
VanEck HIP Sustainable Muni ETF Van Eck Associates Corp. Actively managed12.424Four-fold qualification approach that ranking issuers that support or advance sustainable development as well as promote positive social and environmental outcomes based on their alignment with the United Nations Sustainable Development Goals 9, 11 and 12, ESG considerations and response to climate threat and resilience.  Issuers must support at least one qualified opportunity zone within their region. 

Notes of Explanation:  ^ This is an abbreviated description of the fund’s sustainable investing approach.  For additional information, refer to the fund’s prospectus.  Investment manager name is only listed once.  ER=Expense ratio.  TNA Source:  Morningstar Direct, otherwise, fund documents and information compiled by Sustainable Research and Analysis. 

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