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Natixis U.S. Equity Opportunities ETF EQOP Sustainability

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Sustainability Analysis

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Sustainability Summary


Natixis U.S. Equity Opportunities ETF may not appeal to sustainability-conscious investors.

This fund has rather high exposure to ESG risk relative to its peers in the US Equity Large Cap Blend category, earning it the lowest Morningstar Sustainability Rating of 1 globe. Investors concerned about ESG risk may be better off with funds in the category that receive 4 or 5 globes, as they tend to hold securities less exposed to ESG risk. Unlike impact, which focuses on generating positive environmental and societal outcomes, ESG risk measures the degree to which investments could be affected by material ESG issues like climate change and inequalities.

One potential issue for a sustainability-focused investor is that Natixis U.S. Equity Opportunities ETF doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes. The fund exhibits high exposure (19.56%) to companies with severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that may negatively affect stakeholders, the environment, or the company’s operations.

One key area of strength for Natixis U.S. Equity Opportunities ETF is its low Morningstar Portfolio Carbon Risk Score of 6.72 and low fossil fuel exposure of 4.89% over the past 12 months, which earns it the Morningstar Low Carbon Designation. The fund is therefore well positioned to transition to a low-carbon economy.

ESG Commitment Level Asset Manager