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Fund Group:  Spear Advisors

Fund Name:  Spear Alpha ETF (SPRX)

Investment Adviser:  Spear Advisors LLC

Sustainable Investing Strategy:   ESG Integration-Mixed*

Investing strategy description: The fund is an actively managed ETF that will invest primarily in equity securities, including common stock or American depositary receipts (ADRs) of companies that Spear Advisors LLC believes are poised to benefit from breakthrough innovation in industrial technology. The adviser targets technological developments that can be categorized into one or more of the following themes:  Environmental focus and decarbonization, manufacturing digitization, robotics, industrial automation and photonics and additive manufacturing, space exploration and artificial intelligence.

Sustainable investing strategy description: ESG Integration-Mixed

Thematic:  According to the fund’s advisor as set out in the fund’s prospectus, decarbonization and broader environmental awareness is a powerful theme with the potential for significant innovation in industrial technology. Companies within this theme include those that engage in one or more of the following, or similar, activities: (i) providing low carbon footprint solutions, such as electric and hydrogen vehicles; (ii) providing products, components, services and materials that go into the associated infrastructure (e.g., charging stations, electronic components, materials); (iii) providing products and services that improve the environmental operating efficiency (e.g., energy efficiency innovations) of physical structures; (iv) providing technologies and services for carbon sequestration; and/or (v) providing equipment, components, and services for other environmental initiatives such as water filtration and environmental remediation.  This is just one of five themes pursued by the fund.

ESG integration and Negative Screening:  In evaluating investments for the fund, the adviser applies an environment, social, and governance (ESG) framework that evaluates companies based on various metrics, such as the company’s impact on the environment. This includes consideration of whether the company has any targets for carbon emission reduction, its commitment to reducing energy consumption, and the company’s history or potential to improve the industrial sector or generate environmental benefits. The adviser also considers a company’s governance philosophy, such as the company’s management incentive structure, board of directors composition, and employee ownership. The adviser uses this ESG framework to screen companies for inclusion or exclusion from the fund’s investment universe. The implementation of the fund’s ESG framework, including the evaluation of each investment idea, as well as identification of opportunities that benefit from environmental focus, is a core part of the research process and the fund’s investment theme.

Note of Explanation: 

ESG Integration-Mixed-The Fund’s ESG criteria are generally designed to exclude companies that are involved in, and/or derive significant revenue from, certain industries or product lines, including: gambling, alcohol, tobacco, coal, and weapons.  The investment adviser conducts a supplemental analysis of individual companies’ corporate governance factors and a range of environmental and social factors that may vary by sector. The investment adviser engages in active dialogues with company management teams to further inform investment decision-making and to foster best corporate governance practices using its fundamental and ESG analysis.  (Note:  There is a distinction between engagement when appropriate through dialogue with company management teams as part of an adviser’s fundamental due diligence process and engagement as an active owner on environmental, social and governance issues. Same applies to proxy voting and filing or co-filing shareholder proposals). 


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A continuously updated Funds Directory is also available to investors.  This is intended to become a comprehensive listing of sustainable mutual funds, ETFs and other investment products along with a description of their sustainable investing approaches as set out in fund prospectuses and related regulatory filings.

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Many questions have surfaced in recent years regarding sustainable and ESG investing.  Here, investors and financial intermediaries will find materials that describe the various approaches to sustainable investing and their implementation.  While sustainable investing approaches vary and they have thus far defied universally accepted definitions, many practitioners agree that they fall into the following broad categories:  Values-based investing, investing via exclusions, impact investing, thematic investments and ESG integration.  In conjunction with each of these approaches, investors may also adopt various issuer engagement procedures and proxy voting practices.  That said, sustainable investing approaches will continue to evolve.

In addition to periodic updates regarding sustainable investing and how this form of investing is evolving, investors and financial intermediaries interested in implementing a sustainable investing approach will also find source materials that cover basic investing themes as well as asset allocation tactics.

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