The contribution of the U.S. veterans in building and protecting the country is priceless. It is the duty of the country and its citizens to provide them a better life. To this end, many companies recruit U.S. veterans and deploy their skillset in profit maximization.
To tap that effort, UBS and VIQTORY recently rolled out a socially-responsible fund called InsightShares Patriotic Employers ETF . Let’s delve deeper into the same (read: Guide to Socially Responsible ETFs).
Inside HONR
The fund looks to track the Military Veterans Index that replicates the price movements of U.S. companies with policies, practices and outcomes that back the employment of the country’s veterans. In a nutshell, the fund explores the companies that offer solid job opportunities to U.S. veterans.
“A select group of the most highly-rated Military Friendly employers make up the Military Veterans Index”, according to the factsheet. Some of these companies are the largest and most renowned U.S. corporations.
The fund was launched on May 23, 2018. It charges 65 bps in fees. The fund holds about 104 stocks in its portfolio. No stock accounts for more than 1.33% of the fund. Devon Energy Corp (DVN) (1.33%), Schlumberger Ltd (SLB) (1.22%) and Automatic Data Processing (ADP) (1.10%), Humana (1.08%) and Lowe's Cos (1.08%) are the top five holdings of the fund.
Industrials (20.18%), Financials (19.9%) and Health Care (10.49%) have a double-digit weight in the fund. The fund is large-cap in nature with about 87.45% exposure.
How Does It Fit in a Portfolio?
Per the factsheet, veterans possess several qualities that make them vital contributors to the workforce. VIQTORY made the Military Friendly ratings in 2003 to inspire companies “to invest in programs to recruit, retain and advance veterans, and to help veterans connect to employment opportunities.”
So, it is a fully socially-responsible ETF. Investors who want to dive into the social-responsible theme may consider this fund for investment. After all, 70% of all investors are interested in socially responsible investing, while more than 80% of millennials seek to make socially responsible investment decisions, per the data provided by Morningstar (read: Here's Why ESG ETFs Exceled in Last Three Years).
Competition
There is a similar kind of a fund in this space, namely Pacer Military Times Best Employers ETF . The product looks to offer exposure to U.S. companies that support training and professional development of military veterans, service members and their families. This fund hit the market this year in April.
The fund holds 36 stocks in the basket and charges 60 bps in fees. Amazon.com, Inc (3.74%), United Rentals, Inc. (3.71%) and Progressive Corporation (3.33%) are the top three stocks of the fund. Financials (23.4%), Industrials (22.4%), Information Technology (13.84%) and Consumer Discretionary (12.39%) round out the top four positions in industry allocation. While VETS has an edge over HONR in terms of expense ratio, less company-specific concentration risk is a positive for HONR.
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Honor U.S. Military Veterans With This ETF
The contribution of the U.S. veterans in building and protecting the country is priceless. It is the duty of the country and its citizens to provide them a better life. To this end, many companies recruit U.S. veterans and deploy their skillset in profit maximization.
To tap that effort, UBS and VIQTORY recently rolled out a socially-responsible fund called InsightShares Patriotic Employers ETF . Let’s delve deeper into the same (read: Guide to Socially Responsible ETFs).
Inside HONR
The fund looks to track the Military Veterans Index that replicates the price movements of U.S. companies with policies, practices and outcomes that back the employment of the country’s veterans. In a nutshell, the fund explores the companies that offer solid job opportunities to U.S. veterans.
“A select group of the most highly-rated Military Friendly employers make up the Military Veterans Index”, according to the factsheet. Some of these companies are the largest and most renowned U.S. corporations.
The fund was launched on May 23, 2018. It charges 65 bps in fees. The fund holds about 104 stocks in its portfolio. No stock accounts for more than 1.33% of the fund. Devon Energy Corp (DVN) (1.33%), Schlumberger Ltd (SLB) (1.22%) and Automatic Data Processing (ADP) (1.10%), Humana (1.08%) and Lowe's Cos (1.08%) are the top five holdings of the fund.
Industrials (20.18%), Financials (19.9%) and Health Care (10.49%) have a double-digit weight in the fund. The fund is large-cap in nature with about 87.45% exposure.
How Does It Fit in a Portfolio?
Per the factsheet, veterans possess several qualities that make them vital contributors to the workforce. VIQTORY made the Military Friendly ratings in 2003 to inspire companies “to invest in programs to recruit, retain and advance veterans, and to help veterans connect to employment opportunities.”
So, it is a fully socially-responsible ETF. Investors who want to dive into the social-responsible theme may consider this fund for investment. After all, 70% of all investors are interested in socially responsible investing, while more than 80% of millennials seek to make socially responsible investment decisions, per the data provided by Morningstar (read: Here's Why ESG ETFs Exceled in Last Three Years).
Competition
There is a similar kind of a fund in this space, namely Pacer Military Times Best Employers ETF . The product looks to offer exposure to U.S. companies that support training and professional development of military veterans, service members and their families. This fund hit the market this year in April.
The fund holds 36 stocks in the basket and charges 60 bps in fees. Amazon.com, Inc (3.74%), United Rentals, Inc. (3.71%) and Progressive Corporation (3.33%) are the top three stocks of the fund. Financials (23.4%), Industrials (22.4%), Information Technology (13.84%) and Consumer Discretionary (12.39%) round out the top four positions in industry allocation. While VETS has an edge over HONR in terms of expense ratio, less company-specific concentration risk is a positive for HONR.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>