First vegan investment fund coming to New York Stock Exchange

NEW YORK -- An investment fund designed for animal rights advocates and environmentalists, the first of its kind according to financial experts, is set to begin trading on the New York Stock Exchange (NYSE) next month.

VEGN, as it will show on the NYSE's floor, enters the fray of hundreds of funds that consider environmental, social or governance (ESG) factors in their investment decisions but will be unique in going animal cruelty-free, experts said.

US assets under management that follow ESG principles have been surging, representing one in four dollars last year, up from one in five in 2016, according to The Forum for Sustainable and Responsible Investment, a Washington-based non-profit.

Holding such investments is a way to pressure companies to change their behavior in order not to miss investors, said Tensie Whelan, who heads the New York University's Center for Sustainable Business.

"It's an interesting offering because it's the only one of its kind," she said in a telephone interview.

VEGN, the ticker symbol for the exchange-traded fund (ETF), whose full name is US Vegan Climate Exchange Traded ETF, will exclude stocks among the 500 largest US companies that "rely on animal exploitation", said its creator Beyond Investing.

It will be listed on the NYSE starting on Sept. 10.

Selecting companies whose businesses do not test products on animals, or use animal-derived products, fossil fuels, plastic or agrochemicals, has meant tossing out 43 percent of the top 500 companies, said Claire Smith, the Switzerland-based chief executive of Beyond Investing.

The fund's portfolio guidelines mean it doesn't include many pharmaceuticals, materials and consumer-sector stocks, said Smith.

"Things like clothing, shoe manufacture ... (involve) so much animal products," she said.

Still, a market index of stocks that a parent company of Beyond Investing launched in June last year and that VEGN will track - meaning it will be used to guide what stocks go into the fund - has outperformed the market this year, said Smith, after "a little bit of underperformance last year."

Beyond Investing identifies companies that follow VEGN's criteria by researching their business models, regulations and internal policies, said Smith.

In a report published earlier this month the United Nations called for diets less reliant on meat in order to combat climate change and ensure enough food for all.

Animal Rebellion, a group inspired by Extinction Rebellion's non-violent civil disobedience climate activism, also is pushing for diets without meat.

Aniket Shah, a senior fellow at Columbia University's Center on Sustainable Investment in New York, said a challenge environmental, social and governance-focused funds have typically faced was small scale.

One of the largest ESG funds, run by Blackrock, has more than $1 billion in investment, a relatively small amount compared to mainstream funds, Shah said. 

source: news.abs-cbn.com

Wall Street rebounds from Trump-induced sell-off; dollar rises

NEW YORK - Wall Street rebounded on Thursday from its biggest sell-off in more than eight months, helped by strong US economic data, but uncertainty over US President Donald Trump's agenda kept an index of global equity markets near a three-week low.

The US dollar reversed early losses against a basket of major currencies after stronger-than-expected US economic data put the focus back on a widely anticipated increase in interest rates by the Federal Reserve.

Still, reports that US President Donald Trump had tried to intervene in an investigation of alleged Russian meddling in last year's US presidential election, and that his aides had numerous undisclosed contacts with Russian officials, kept markets concerned over his ability to implement his economic agenda.

Adding to market jitters across the Americas, Brazilian stocks triggered a 30-minute halt to trading after the benchmark Bovespa index fell 10 percent following a report that President Michel Temer gave his blessing to an attempt to pay to silence a potential witness in the country's biggest-ever graft probe.

The iShares MSCI Brazil ETF tumbled 16 percent.

MSCI's all-country world equity index was down 0.31 percent after dipping to its lowest since April 25 earlier in the day.

The index found some support on Wall Street. US stocks recovered ground after a near 2 percent sell-off on Wednesday for the S&P 500, as upbeat economic data emboldened investors to return to the market.

"We could be just shaking off the jitters here. Yesterday, investors were really worried," said Janna Sampson, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

Investors were likely relieved, she said, by Wednesday night's appointment of former FBI chief Robert Mueller to investigate alleged Russian interference in the election and possible collusion between Trump's campaign and Moscow.

"Whatever the (investigation) result, people feel they might have confidence it's an accurate, unbiased result," she said.

Earlier in the day, the Philadelphia Federal Reserve said its business activity index rose in May after declining for two months. Weekly unemployment data also pointed to strength in the labor market.

The Dow Jones Industrial Average rose 56.09 points, or 0.27 percent, to end at 20,663.02, the S&P 500 gained 8.69 points, or 0.37 percent, to finish at 2,365.72 and the Nasdaq Composite added 43.89 points, or 0.73 percent, to close at 6,055.13.

The pan-European FTSEurofirst 300 index closed down 0.89 percent at 7,436.42, ending off lows.

US Treasury yields rose from one-month lows as stocks recovered from Wednesday's drop, reducing demand for safe-haven bonds.

The 10-year note was down 4/32 in price to yield 2.229 percent, up from 2.216 percent late on Wednesday.

Spot gold dropped 1 percent to $1,247.78 an ounce.

The US dollar reversed early losses against a basket of major currencies, getting a boost from the better-than-expected US data.

"The readings on jobless claims and the Philly Fed index back expectations for faster (second-quarter) growth and a Fed rate hike next month," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

The dollar index was up 0.27 percent, with the euro down 0.45 percent to $1.1108.

Oil prices settled higher as key producing countries suggested they would extend supply cuts to reduce an ongoing global crude glut.

Benchmark Brent crude futures ended the session 30 cents higher at $52.51 a barrel while US crude futures settled up 28 cents at $49.35.

source: news.abs-cbn.com

Are ETFs a Good Way to Create Secondary Streams of Income?

ETFs, or Exchange Traded Funds, are all the rage in the investment world, but so far, they really don’t have much of a track record. This is a fairly new method for investing and the long term data just isn’t there to determine how effective these investments can be over time.

There is a lot of controversy over whether or not ETFs are sound, but many of them do produce impressive gains over the short term. So, are these investments a good way to create a secondary stream of income? Let’s take a look at the benefits and downsides of this form of investment.

Risk –

This will depend largely on the type of ETF you select. For example, those that sunk their money into housing or mortgage funds are truly regretting that decision now and facing catastrophic losses. Those that stuck with a more diversified fund, like the SPDR Trust, or the Vanguard Total Stock Market Vipers are in a better position.

The key is picking the right kind of ETF. Right now, until there is more data available on these funds, it is best to stick with the ones that are well known and diversified. These funds do have a short term track record of performing well, and there is much less risk than with a “designer” ETF.

Short Term Gains –

ETFs can do very well in the short term, with some returns in excess of 30% over six months. However, look at the long picture, and that may drop to -30% for twelve months. The bottom line is that this is not a reliable long term investment. There is just too much room for risk and losses can be high when you look at the data for many of these funds.

Some people have found that getting in and out with an ETF is the best strategy, but ultimately, that decision is up to you and your broker. Many of the benefits of an ETF are outweighed by the inherent risks and the overall lack of good performance data.

So, what does that spell for those looking to create multiple streams of income? Right now, unless you are willing to ride out the markets, the answer is probably now. So far, the data indicates that ETFs are solid performers short term, and not so reliable over the long term. Whether you want to take that risk of sinking your money in and hoping for long term gains is completely up to you. However, there are many other long-term performers out there that are much more suited towards building a reliable secondary stream of income.

Diversity is always good however, and if you have some extra money that you are not relying on, you may want to discuss ETFs with your broker. One thing is certain, these funds will be interesting to watch, especially over the next two years as the housing market and the state of the economy continue to affect them.

source:  richcreditdebtloan.com