ETF Hearsay: New LGBTQ + ESG 100 ETF to list on May 18

LGBTQ + ESG100 ETF
Ticker: LGBT
Exchange: NASDAQ

Expense ratio: 0.75%
Original filing date: June 17, 2019
Effective date: May 14, 2021
Listing Date: May 18, 2021

CUSIP: 74280T201
Active: No
Index / Benchmark: LGBTQ100 ESG Index

Investment Objective:
Seeks to track the investment results (before fees and expenses) of the LGBTQ100 ESG Index.

Investment Strategy / Index Methodology:
Universe: Fortune 1000 companies

1. 100% on self-reported survey (Harris Poll)

Non-discrimination policies
Benefits for LGBTQ workers and their families
Inclusive culture & corporate responsibility

2. Must be in top 500 largest US companies by market capitalization

3. Screens out companies in guns, tobacco, pornography, weapons of mass destruction, two-thirds revenue from gaming industry (FactSet Revere Business Industry Classification System "RBICS")

4. Screen for fundamentals, low price volatility, and liquidity

5. Screen for satisfactory ESG (Institutional Shareholder Services) or LGBTQ Brand Loyalty & Support (Fuzzy Logix LLC) scores.

6. Top 2 companies of each of the 11 RBICS sectors are automatically included. The remaining companies are selected based on descending order by sales growth over past 1 year period until 100 names are reached.

7. Weight of each of 100 companies is based on inverse of volatility, free float adjusted market capitalization, and price to earning ratio. No RBICS sector can be over 25%, and no single component can be over 5%.

8. Annual reconstitution and quarterly rebalance.

Constituents: 100

Adviser: Penserra Capital Management, LLC
Sub-Adviser: N/A
Portfolio Managers: Dustin Lewellyn, Ernesto Tong, and Anand Desai
Administrator: U.S. Bancorp Fund Services
Fund accountant: U.S. Bancorp Fund Services
Transfer agent: U.S. Bancorp Fund Services
Custodian: U.S. Bank, N.A.
Distributor: Quasar Distributors LLC
Legal counsel: K&L Gates LLP
External accounting: Cohen & Company Ltd.
Compliance: Cipperman Compliance Services, LLC

Prospectus is here.