ESG is the new face of values-based investing and utilizes an inclusionary methodology to select companies exhibiting favorable traits in three distinct categories. Alternatively, traditional socially responsible investing has been criticized for market-like exposure with a higher cost for the exclusionary screen of “sin stocks,” such as those in the tobacco, alcohol, and firearms industries.

CLS’s Focused ESG Strategy primarily invests in equity ETFs, across various asset classes, which have been screened by Morningstar to be “Socially Conscious.” The ETFs that are utilized must also have above- average or high ESG scores versus their peer category using data provided by Sustainalytics, a global leader in ESG research and ratings.

Strategy Comparison
Category Focused ESG Risk Budgeted ESG
% ESG 100% 100%
% Equity 100% 100% – 25%
% ETFs 100% 5% – 25%
Models 1 8
Holdings 8-12 10-15
Average Fund Model Expenses 0.34% 0.82% – 0.91%
Risk Budget 100** 100-30
Primary Investment Vehicles ETFs Active Mutual Funds
Risk Budgeted No Yes
Actively Managed Yes Yes
Globally Diversified Yes Yes
Minimum Investment $50,000 $10,000