Good 'KRMA' Pays Off for One ETF

The Karma fund is an equal-weighted ESG fund trading under the ticker 'Karma'. It provides exposure to US-listed companies that positively impact five key stakeholders: customers, suppliers, stock and debt holders, local communities, and employees. The fund tracks an index using a proprietary process to select its holdings, including companies like Ford, Starbucks, Intel, and American Express. With a minimum market cap of $2 billion, it excludes small caps. The fund has an expense ratio of 43 basis points and has accumulated $50 million in assets. Since its launch in July 2016, it has returned over 30%, outperforming the S&P 500. It also receives a favorable rating from Bloomberg Intelligence for its equal weighting.

What is the primary focus of the Karma fund?

• Investing in small-cap companies

• Achieving positive outcomes for key stakeholders

• Maximizing short-term profits

• Focusing solely on technology companies

Which of the following companies is NOT mentioned as part of the Karma fund's holdings?

• Ford

• Starbucks

• Google

• Intel

What is the minimum market capitalization required for a company to be included in the Karma fund?

• $2 billion

• $1 billion

• $5 billion

• $500 million

How much has the Karma fund returned since its launch in July 2016?

• 35%

• 30%

• 25%

• 20%

What recognition does the Karma fund receive in the Bloomberg Intelligence Traffic light system?

• Red light for high risk

• Yellow light for moderate performance

• Green light for equal weighting

• Blue light for innovation