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Impact Shares YWCA Women's Empwrmt ETF WOMN Sustainability

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Sustainability Analysis

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Sustainability Summary


Impact Shares YWCA Women's Empwrmt ETF has several promising attributes that may appeal to sustainability-focused investors.

Impact Shares YWCA Women's Empwrmt ETF has an average Morningstar Sustainability Rating of 3 globes, indicating that the ESG risk of holdings in its portfolio is similar to that of its peers in the US Equity Large Cap Blend category. Investors concerned about ESG risk may be better off with funds in the category that receive 4 or 5 globes, as they tend to invest in securities less exposed to ESG risk. ESG risk provides investors with a signal that reflects to what degree their investments are exposed to risks related to material ESG issues, such as climate change and inequalities, that are not sufficiently managed. ESG risk differs from impact, which is about seeking positive environmental and social outcomes.

Based on its latest prospectus, sustainability or ESG factors are a focus in the investment process of Impact Shares YWCA Women's Empwrmt ETF. Funds with ESG-focused mandates are more likely to deliver positive sustainability outcomes. The fund has an asset-weighted Carbon Risk Score of 7.18, indicating that its current equity and/or bond holdings have low exposure to carbon-related risks. These are risks associated with the transition to a low-carbon economy such as increased regulation, changing consumer preferences, technological advancements, and stranded assets. Impact Shares Ywca Women's Empwrmt Etf shows 13.56% involvement in carbon solutions. This percentage surpasses the 11.71% average involvement of its peers in the Large Blend category. Carbon solutions include products and services related to renewable energy, energy efficiency, green buildings, green transportation, and so on. The fund aims to avoid, or limit exposure to, companies in violation with international norms, such as the UN Global Compact or the Universal Declaration of Human Rights.

The fund's current involvement in fossil fuels reaches 8.14%, surpassing 7.41% for its average category peer. Companies are considered involved in fossil fuels if they derive some revenue from thermal coal, oil, and gas. The fund has relatively high exposure (10.29%) to companies with high or 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.

By prospectus, the fund aims to avoid, or limit its exposure to, companies associated with controversial weapons, tobacco, and small arms. The fund mostly fulfills this goal; however, it does exhibit 0.19% exposure to companies involved in small arms. This compares with 1.01% for its average peer in the US Equity Large Cap Blend category.

ESG Commitment Level Asset Manager