Activist investment firm Engine No. 1 to launch US$100mln ETF


Engine No. 1, the activist investment firm that managed to get three of its directors onto Exxon Mobil Corp’s board despite holding just 0.02% of the oil giant, is launching a US$100mln exchange traded fund (ETF).

The new ETF – The Transform 500 ETF – will have the ticker ‘VOTE”.

The fund, whose motto is “you have to engage to effect change”, will invest in 500 of the largest US companies and track the Morningstar US Large Cap Select Index, in an effort to “instigate positive change for employees, customers, communities, and the environment”.

Engine No. 1, which launched last December, is looking to tap into retail investors’ frustration that their main stock portfolios often don’t address ESG concerns, Reuters reported.

The activist investment firm describes itself as “purpose-built to create long-term value by harnessing the power of capitalism”…”we believe that over time the interests of Main Street and Wall Street align, and we can engage as active owners to create value by focusing on this alignment”.

Earlier this month the environmental activist fund saw its third nominee appointed to Exxon’s 12-member board.

While it holds only a small number of Exxon shares it has proved influential with the largest US oil company’s pension fund shareholders, including BlackRock which holds a 6.6% stake.

Engine No.1 is trying to force the hydrocarbons behemoth to move away from fossil fuels.


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