San Francisco, CA
Ethic wants to change the way the world invests, by bringing sustainable investment options mainstream. The founders of the company have spent years advising esoteric investment strategies and have seen that value-based investing does, in fact, offer competitive returns.
Investors have taken note as active stock-pickers have trouble consistently meeting the growth of the broader market, despite the high fees paid for their expertise. This reality has led to the growth of passive investment vehicles, which allows an investor to buy into a low-cost fund that does nothing more than track the performance of the broader market.
Index funds by definition provide an investor access to a broad basket of equities. Ability to filter these buckets around themes such as environmental sustainability, social factors, and governance-related metrics would be invaluable as people look to include more values in their portfolio. However, while index funds have become a normal part of an investor’s portfolio, those of us that seek value alignment have limited options.
The process of creating a public market portfolio which aligns with your values is certainly a labor of love. When Access Ventures first began the process of becoming a one-pocket investor, we lamented not having custom index options. Then we came across Ethic and immediately understood the value they hoped to provide.
In addition to having a great name, Ethic provides customizable index funds based upon your individual values and tracks the performance of your custom fund against the relevant benchmark index. We met them just after they completed the 500 Startups accelerator program, and participated in their equity round of capital designed to help the company finish their product build and fund a go-to-market effort. At that time, we also committed to being one of the first active accounts on the platform.
At Access Ventures we seek mission-alignment in every area of our work. Ethic is an example of a partner that provides impact through providing access to passive investment into value-aligned public equities.
Our relationship with Ethic started as an equity investment into an idea we believed should exist. The company has successfully grown into the partnership we hoped it would be. Ethic helps Access Ventures to build a custom equity index fund centered around our specific values.
How We Helped
We participated in an equity round of investment that provided capital necessary to complete product build out and initial go-to-market efforts.
In addition to our investment in the company, we also have a significant portion of our public investment dollars on their platform and advocate for their adoption by wealth managers and family offices across the country.