Vanguard’s New Low-Cost ESG ETFs

Mutual fund giant Vanguard, based in Valley Forge, Pa., has expanded its suite of environmental, social and governance (ESG) funds with two low-cost ETFs. The Vanguard ESG U.S. Stock ETF (ESGV) and the Vanguard ESG International Stock ETF (VSGX) are commission-free and among the lowest cost ETFs in the industry.

The funds screen out companies participating in alcohol, tobacco, gambling, adult entertainment, weapons, fossil fuels and nuclear power. They also exclude companies failing to meet Vanguard’s diversity criteria and the U.N.’s Global Compact principles.

The ESGV fund covers over 80% of U.S. equity market capitalization. It has an expense ratio of 0.12% and tracks the FTSE U.S. All Cap Choice Index. The VSGX fund has an expense ratio of 0.15% and follows the FTSE Global All Cap ex U.S. Choice Index. It covers 70% of international equity market capitalization.

William Coleman and Gerard O’Reilly serve as portfolio managers for the ESGV fund while Christine Franquin and Scott Geiger manage the VSGX fund. Vanguard’s Equity Index Group, which oversees $3.1 trillion in assets worldwide, manages both funds.

 

New 401(k) Tech

There is new technology in the 401(k) space that helps advisors work with more clients.

Tolerisk, a provider of risk-tolerance assessment tools out of Philadelphia, created Tolerisk 401(k) to allow advisors to not only work with more clients but also to shift away from target-date funds.

Tolerisk 401(k) gathers data on time horizons, savings patterns, spending habits, the assets in clients’ retirement plans and any additional factors such as personality data, then evaluates the clients’ risk tolerance and the probability that they will outlive their money, then recommends tailored asset allocations. The software helps advisors save time and yet provides the data they need to build a more integrative and comprehensive retirement plan.

 

Northern Trust Introduces Northern Engage360 Fund

Northern Trust Asset Management has launched the Northern Engage360 Fund, a mutual fund that approaches diversity by increasing the number of lenses.

Instead of evaluating diversity through a single dimension of firm ownership, the Chicago-based fund uses a multi-dimensional approach that considers leadership, investment teams, community engagement and corporate spending.

Northern Engage360 is a global equity portfolio benchmarked to the MSCI All Country World Index for developed and emerging markets. It joins Northern Trust’s 44 other mutual funds that cover equity, fixed income and real assets with active and passive investment techniques.

Five subadvisors manage the fund’s allocations.

 

Voya Grows 401(k) Plan Business

Voya Financial Advisors has partnered with RPAG, a 401(k) business management platform, to enhance its 401(k) offerings.

Voya’s partnership will give its network of 2,000 advisors access to RPAG’s support team and educational tools such as modules on the role fiduciaries play for plan sponsors. There is a growing trend among 401(k) plans to seek independent investment advisors to assist with investment selections and education responsibilities, Voya says.

The new initiative gives financial advisors with Voya the chance to grow a retirement business or enter into one.

 

New York Life My Care Insurance

There’s a new affordable and flexible long-term-care insurance policy in town and it’s New York Life (NYL) My Care.

New York Life, an insurance company based in New York, N.Y., designed NYL My Care for price-conscious middle-class consumers who want simple policies. It is based on a previous version of long-term-care insurance and includes a deductible, co-insurance and multiple plan tiers to suit a variety of budgets and risk tolerance.

The policy covers long-term-care needs such as home care, community-based care and facility care. The benefits also include the return of the client’s premium up to age 65, a waiver of the premium after the deductible is satisfied, the client’s ability to increase his or her coverage up to age 70 and a client loyalty discount.

 

Barings Teams Up With iCapital To Break Barriers

When financial services firm Barings wanted a customized platform with alternative strategies that it could offer to registered investment advisors and high-net-worth clients, it tapped iCapital Network.

iCapital provides a streamlined process for accessing alternative investments while Barings offers institutional investors a range of investments across private credit, private equity, real assets and real estate.

Historically, some investors have had a difficult time accessing alternative investment strategies, Barings says. This partnership allows it to provide certain strategies to RIAs and their clients and opens their full offerings to both high-net-worth clients and institutional clients.