TRUESHARES

TRUESHARES

A New Frontier of Impact Investing

Impact investing is a relatively nascent type of investment strategy that has gained steam in the past few years. Traditionally, impact investing directs capital toward companies that generate some social or environmental benefit to the world in addition to producing financial gain from fund returns.

A report by the World Bank’s International Finance Corporation (IFC) found that $2.3 trillion (1) were invested for impact globally in 2020, with the asset class seeing significant growth during, and because of, the pandemic. That figure includes private funds and institutions as well as publicly owned development finance institutions and development banks.

The key attributes (1) that differentiate impact investing from other forms of environmental, social, governance (ESG) or Socially Responsible Investing (SRI) include having specific intent, credible contributions, and measurement systems. Yet investors still consider a company’s ESG rating and other corporate social responsibility (CSR) indicators when choosing to invest.

The same issues that are present in ESG investing, that environmentally and socially conscious terms are ill-defined and lack significant oversight from a governing body like the SEC, persists in impact investing. This vagueness opens the door to greenwashing in the impact investment landscape. The actual intended impact of an impact investment may not be known or accurate in cases where the selection of companies for an impact investment fund is based on such principles. The ICF report (1) found that of the estimated $2.3 trillion in impact investing, only about a quarter (roughly $636 billion) were able to measure their impact.

In partnership with RiverNorth and Folds of Honor, TrueShares offers an ETF that symbolizes a new frontier for impact investing. The RiverNorth Patriot ETF (FLDZ) goes many steps further than funds focused on meeting ESG or SRI principles in that the profits and a majority of fund fees are donated directly to Folds of Honor, a 501(c)(3) non-profit focused on providing education and scholarships to families of veterans and first responders who were disabled or killed in action. Since its founding in 2007, Folds of Honor has averaged 91 cents of every dollar raised going to their scholarship program. The non-profit has awarded over 44,000 educational scholarships since 2007, with 6,500 scholarships awarded in the 2021-2022 cycle alone. Minority recipients represent 41% of all scholarships awarded.

FLDZ seeks capital appreciation by investing in mid to large cap companies. To be included in the fund, companies must be U.S. domiciled, have U.S. listed equities, generate at least 90% of revenue in the U.S., and have a market cap over $5 billion. As far as impact investment is concerned, FLDZ flips the strategy on its head by allocating fund profits and fees toward an impact as opposed to selecting fund holdings based on their individual impacts. FLDZ has clear intent, credible and transparent contributions, and measurable and specific impact while offering an alternative to philanthropy in a way that is simple, transparent, and, yes, impactful.

Learn more about RiverNorth Patriot ETF (FLDZ) at www.truesharesetfs.com/fldz.

  1. https://www.ifc.org/wps/wcm/connect/publications_ext_content/ifc_external_publication_site/publications_listing_page/impact-investing-market-2020

The TrueShares RiverNorth Patriot ETF is subject to the following risks: Equity Market Risk – securities held in the Fund’s portfolio may experience sudden, unpredictable drops in value or long periods of decline in value. Market Events Risk – Markets have experienced significant periods of volatility in recent years due to a number of economic, political and global macro factors, including the impact of the coronavirus (COVID-19) pandemic and related public health issues, growing concerns and uncertainties regarding interest rates, trade tensions and the threat of tariffs resulting in volatility and negative impacts on asset prices, liquidity of certain securities and normal operations of the securities markets. New Fund Risk – The Fund is a recently organized investment company with no operating history. Other Potential Risks – The Fund may invest in ‘when-issued’ securities; preferred stocks; rights/warrants; tracking stocks; investment company securities/pooled investments; REITs; and repurchase agreements. Investors should read the Fund’s prospectus for more information related to these risks.

Recent Posts

    Request a meeting with our investment team

    433 W. Van Buren Street, 1100-E
    Chicago, IL 60607
    Email: info@true-shares.com
    Phone: 877.774.TRUE

    ©2024, TrueShares, ©2024 TrueMark Investments, LLC. (“TrueMark”).

    Before investing, carefully consider the TrueShares ETFs investment objectives, risks, charges and expenses. Specific information about TrueShares is contained in the prospectus and a summary prospectus, copies of which may be obtained by visiting www.www.true-shares.com. Read the prospectus carefully before you invest.

    An investment in TrueShares is subject to numerous risks, including possible loss of principal. The ETFs are subject to the following principal risks: Authorized Participants, Market Makers, and Liquidity Providers Concentration Risk associated with ETFs; Equity Market Risk; Management Risk; Market Capitalization Risk (Large Cap; Mid Cap, Small Cap Stock); Market Risk; New Fund Risk.

    Individual investors should contact their financial advisor or broker dealer representative for more information on TrueShares ETFs.

    Investment Products and Services are: Not FDIC INSURED / May lose value / No bank guarantee

    All registered investment companies, including TrueShares, are obliged to distribute portfolio gains to shareholders at year-end regardless of performance. Trading in TrueShares ETFs will also generate tax consequences and transaction expenses. The information provided is not intended to be tax advice. Tax consequences of dividend distributions may vary by individual taxpayer.

    TrueShares ETFs are bought and sold through exchange trading at market price, not Net Asset Value (NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.

    ETF shares may be bought or sold throughout the day at their market price, not their NAV, on the exchange on which they are listed. Shares of ETFs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market.

    ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETF’s NAV. Brokerage commissions and ETF expenses will reduce returns.

    Fund Intelligence Mutual Fund Industry and ETF Award shortlists and winners are comprised of individuals and firms who have submitted entries or been nominated via the online submission process, as well as through recommendations from leading market participants. Fund Intelligence Mutual Fund Industry and ETF Award judges will use the submitted application material, as well as any uploaded supplemental information, to determine which firm, individual or product they believe to be the most suitable and deserving winners for each category. Fund Intelligence Mutual Fund Industry and ETF Award judges have the discretionary power to move nominations into alternative categories that they think may be more suitable. Fund Intelligence Mutual Fund Industry and ETF Awards were decided by an independent panel of 20 judges with expertise across the asset management space.

    TrueShares ETFs (the “Funds”) are registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940 and are distributed by Foreside Fund Services, LLC, member FINRA.

    TrueMark Investments, LLC, not an affiliate of Foreside Fund Services, LLC., is the investment advisor to the Funds and receives a fee from the Funds for its services.

    TrueShares ETFs are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this website should be considered a solicitation to buy nor an offer to sell shares of any fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.