AdvisorShares, Cousteau, To Create ETF

By Olivier Ludwig,

Shutterstock photo

AdvisorShares, the Bethesda, Md.-based fund provider known for its actively managed ETFs, has a socially responsible ETF in the works that would donate at least half of its management fee to a foundation run by the grandson of the late oceanography legend and scuba inventor Jacques Cousteau.

The AdvisorShares Global Echo ETF (NYSEArca:GIVE) would be the market's first multimanager ETF, and will be developed with Philippe Cousteau Jr., 31. The ETF would generate absolute returns using a sustainable investment mandate.

"Through my work with individuals and organizations around the globe, I've seen an opportunity and a need for creative solutions to the global challenges we face," Cousteau Jr., co-founder and chairman of the Global Echo Foundation, said in a press release. "It's critical that we find innovative models for the financial market that create positive impact for investors, and the world, beyond financial returns."

Cousteau Jr. has to a great extent picked up the oceanographic mantle of his grandfather and his father, Philippe, who died in a boating accident during an ocean expedition before Philippe Jr. was born.

The donation piece of the project recalls a similar gesture of social responsibility made by New York-based ETF sponsor Global X, which said it will donate the management fee of its recently launched Global X Food ETF (NYSEArca:EATX) to Action Against Hunger/ACF International, a global humanitarian organization. Global X said the deal would kick in once the ETF turns profitable.

The fund, which AdvisorShares put into registration with the Securities and Exchange Commission on July 15, is the latest piece of a growing family of active ETFs hatched by the firm.

The fund will have economic, environmental, technological and social themes, according to the paperwork AdvisorShares filed with the SEC.

  • The economic themes would include:corporate governance, risk and crisis management, community investment, energy efficiency, food and green building.
  • The environmental themes would focus on air, water and earth.
  • The technology themes would include mobility, renewable energy, and access)
  • Social themes include human health, such as occupational health and safety.

AdvisorShares Chief Executive Officer Noah Hamman said he hopes his firm will have built up a reputation as the dominant purveyor of active ETF strategies before the still-reluctant legion of reputed mutual funds firms takes the plunge and tries to stake a claim in the rapidly expanding world of ETFs.

AdvisorShares manages more than $360 million in assets in its 10 actively managed ETFs, according to company data. Its most successful strategy is the Cambria Global Tactical ETF (NYSEArca:GTAA), a fund of funds using index ETFs that has almost $186 million in assets, according to data compiled by IndexUniverse.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing ETFs
Referenced Stocks: EATX , GTAA

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