This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ETFs Get a Conscience

Exchange-traded fund companies are wearing green as they roll out two new offerings designed to track socially responsible indexes.

Barclay's Global Investors, the leader in ETFs with over $111 billion in ETF assets, formally introduced the iShares KLD Select Social Index Fund (KLD) Monday. The ETF started trading last Friday under the ticker "KLD" on the New York Stock Exchange.

The expense ratio for the ETF is 50 basis points. Shares of KLD recently traded at $50.36, up 52 cents.

The KLD follows the KLD Select Social Index, which comprises 250 to 350 non-tobacco companies found in the Russell 1000 and ranked according to their social and environmental impact. The rankings are performed by KLD Research & Analytics, a Boston-based investment research and index firm.

In evaluating a company, KLD says it considers the environment, labor relations, community relations, diversity, product safety human rights record and governance.

The Select Social Index was introduced in June 2004 and returned 9.8% in the fourth quarter, matching the Russell 1000, according to KLD. For the month of December 2004, the KLD index gained 3.65%, 3 basis points better than the Russell 1000.

The index's top 10 holdings at Dec. 31 were Wells Fargo (WFC - Get Report), Microsoft (MSFT - Get Report), Procter & Gamble (PG), Fannie Mae (FNM), General Mills (GIS), Bank of America (BAC - Get Report), Johnson & Johnson (JNJ), General Electric (GE), St. Paul Travelers (STA) and Intel (INTC).

Lee Kranefuss, CEO of BGI's Intermediary Business, says KLD addresses one of the principal barriers facing socially responsible investment: the reluctance of institutional investors to limit diversification across the market.

"This ETF responds to these concerns by investing in domestic companies representing every industry, except tobacco, modifying their weights based on their social characteristics and maintaining risk exposure similar to the Russell 1000," says Kranefuss.

PowerShares Capital Management, BGI's far smaller rival with about $500 million in assets, announced its intentions today to release its own socially responsible ETF.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PBW $4.00 -2.40%
KLD $84.81 -1.06%
BAC $14.24 -3.60%
MSFT $49.84 -1.50%
WFC $49.74 -1.70%


Chart of I:DJI
DOW 17,685.64 -205.52 -1.15%
S&P 500 2,058.40 -23.03 -1.11%
NASDAQ 4,758.1620 -59.4320 -1.23%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs