Jantzi Research Inc., in partnership with Barclays Global Investors Canada Ltd. have launched the first socially responsible Exchange Traded Fund (ETF) in Canada, iShares CDN Jantzi Social Index Fund (XEN).
“The launch of this ETF is another example of the increasing demand in the area of socially responsible investment (SRI)” says Michael Jantzi, founder and president of Jantzi Research. “Today we can’t open a newspaper, listen to the radio, or watch TV without hearing about environmental issues, especially climate change. Canadians are looking for ways to put their concern into action and are beginning to realize that their investment dollars can be a powerful agent for changing and influencing corporate behaviour. They want to invest in companies that are trying to do the right thing and that are trying to make a difference.”
The Fund provides exposure to companies that have positive environmental, social and governance (ESG) attributes. XEN will track the highly regarded Jantzi Social Index (JSI), a socially screened, market capitalization-weighted common stock index consisting of 60 Canadian companies that pass a set of broadly based ESG rating criteria. The Index was launched seven years ago and has increased in value by almost 78%, outpacing both the S&P/TSX Composite and the S&P/TSX 60.
“The launch of XEN combines two of the strongest trends in investing today – the rise of ETFs and the growing desire of investors to align their investments with their values,” said Heather Pelant, Head of Business Development, Exchange Traded Products at Barclays Canada.
In Canada, SRI assets are valued at over $500 billion, representing a 20% of the combined retail mutual fund market and the institutional investment market. SRI assets have grown almost tenfold since 2004.
Jantzi Research is Canada’s leading provider of environmental, social and governance (ESG) research to institutional investors.
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