DENVER, March 25, 2020 /PRNewswire/ -- SS&C ALPS
Advisors has announced that The ALPS Clean Energy ETF (Ticker:
ACES) now incorporates sustainability guidelines into the portfolio
management process to meet Environmental, Social, and
Governance (ESG) standards.
Sustainable investing is an investment approach that takes into
consideration environmental, social and governance (ESG) factors
during the investment decision-making process. Effective
January 31, 2020, ACES began to
adhere to sustainability guidelines, developed by Institutional
Shareholder Services Inc. (ISS), when casting proxy votes on the
fund's holdings.
ACES methodology incorporated environmental criteria in its
proxy voting by design. The fund has since incorporated the social
and governance standards.
"We believe that a fund that meets ESG standards should have its
holdings meet all of the ESG criteria," said Andy Hicks, Portfolio Manager at SS&C ALPS
Advisors. "As a result, ACES is a product that may allow investors
to better align their investments with their personal beliefs."
According to Morningstar Research, in 2019, investors placed
approximately $21.4 billion into
socially responsible funds—a 4x increase over the previous
calendar-year record, which occurred in 2018.1
About The ALPS Clean Energy ETF
The ALPS Clean Energy ETF (ACES) tracks the CIBC Atlas Clean
Energy Index, which provides exposure to a diverse set of U.S. or
Canadian-based companies involved in the clean energy sector,
including renewables and clean technology. ACES provides investors
with the following unique characteristics:
- Clean Energy Pure-Plays: Companies must derive over 50% of
their value from a clean energy business.
- U.S. and Canadian-Listed: Companies listed in the U.S. and
Canada provide a higher level of
financial reporting transparency that generally results in improved
capital stewardship and pure-play analysis.
About the SS&C ALPS Advisors
ALPS Advisors, a
wholly-owned subsidiary of SS&C Technologies, Inc., provides
differentiated portfolio exposure utilizing both active and passive
investments. We have a deep knowledge of the ETF landscape since
1995 and have partnered with best-in class managers with focused,
dedicated investment expertise since 2006.
Important Disclosures:
An investor should consider investment objectives, risks,
charges and expenses carefully before investing. To obtain a
prospectus, which contains this and other information, please call
1-866-759-5679 or visit www.alpsfunds.com. Please read the
prospectus carefully before investing.
ALPS Clean Energy ETF shares are not individually
redeemable. Investors buy and sell shares of the ALPS Clean Energy
ETF on a secondary market. Only market makers or "authorized
participants" may trade directly with the fund, typically in blocks
of 50,000 shares.
There are risks involved with investing in ETFs including the
loss of money. Additional information regarding the risks of this
investment is available in the prospectus.
An investment in the Fund is subject to investment risk
including the possible loss of the entire principal amount that you
invest.
Clean Energy Sector Risk. Obsolescence of existing
technology, short product cycles, falling prices and profits,
competition from new market entrants and general economic
conditions can significantly affect companies in the clean energy
sector. In addition, intense competition and legislation resulting
in more strict government regulations and enforcement policies and
specific expenditures for cleanup efforts can significantly affect
this sector. Risks associated with hazardous materials,
fluctuations in energy prices and supply and demand of alternative
energy fuels, energy conservation, the success of exploration
projects and tax and other government regulations can significantly
affect companies in the clean energy sector. Also, supply and
demand for specific products or services, the supply and demand for
oil and gas, the price of oil and gas, production spending,
government regulation, world events and economic conditions may
affect this sector. Currently, certain valuation methods used to
value companies involved in the clean energy sector, particularly
those companies that have not yet traded publicly, have not been in
widespread use for a significant period of time. As a result, the
use of these valuation methods may serve to increase further the
volatility of certain clean energy company share prices.
Concentration Risk. The fund seeks to track the underlying
index, which itself may have concentration in certain regions,
economies, countries, markets, industries or sectors.
Underperformance or increased risk in such concentrated areas may
result in underperformance or increased risk in the fund.
Canadian Investment Risk. The fund may be subject to risks
relating to its investment in Canadian securities. The Canadian
economy may be significantly affected by the U.S. economy, given
that the united states is Canada's
largest trading partner and foreign investor. Any negative changes
in commodity markets could have a great impact on the Canadian
economy. Because the fund will invest in securities denominated in
foreign currencies and the income received by the fund will
generally be in foreign currency, changes in currency exchange
rates may negatively impact the fund's return.
Micro-Capitalization Company Risk. Micro-cap stocks involve
substantially greater risks of loss and price fluctuations because
their earnings and revenues tend to be less predictable (and some
companies may be experiencing significant losses), and their share
prices tend to be more volatile. The shares of micro-cap companies
tend to trade less frequently than those of larger, more
established companies, which can adversely affect the pricing of
these securities and the future ability to sell these
securities.
Small- and Mid-Capitalization Company Risk. Smaller and
mid-size companies often have narrower markets, less liquidity,
more limited managerial and financial resources and a less
diversified product offering than larger, more established
companies. As a result, their performance can be more volatile,
which may increase the volatility of the Fund's portfolio.
Large Capitalization Company Risk. The large capitalization
companies in which the Fund invests may underperform other segments
of the equity market or the equity market as a whole.
ALPS Portfolio Solutions Distributor, Inc. is the distributor
for the ALPS Clean Energy ETF.
1 Morningstar Research, "Sustainable Funds U.S.
Landscape Report", February 14,
2020
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SOURCE SS&C / ALPS Advisors
