An investing index that aims to track the most transparent companies in the world is changing its holdings for 2022.
The index — called the Transparency Index — is adding 20 new companies to its list of 100 companies that exclude certain industries it deems harmful for people and the planet.
That includes alcohol, banking, chemical, confectionary, fossil fuel transportation, gambling, metals and minerals, oil and natural gas, and tobacco.
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Each company in the index has a weighting of about 1%.
The index is being used for a new ETF provided by ARK Investment Management, led by CEO and chief investment officer Cathie Wood. The ETF, called the ARK Transparency ETF, trades under the ticker CTRU, and is the company’s first passive investment product.
That ETF opened at $18.41 per share on Friday, before falling by a little more than 1%. In contrast, the firms’ flagship ARK Innovation ETF suffered a dramatic selloff on Thursday, due in part to rising interest rates. That fund was trading around $85 per share on Friday morning.
New companies on the 2022 Transparency Index
|CBOE||CBOE GLOBAL MARKETS, INC.|
|CRSR||CORSAIR GAMING, INC.|
|SON||SONOCO PRODUCTS CO.|
|SPB||SPECTRUM BRANDS HOLDINGS, INC.|
|SPT||SPROUT SOCIAL, INC.|
|SHOO||STEVEN MADDEN, LTD.|
|SFIX||STITCH FIX, INC.|
|WRBY||WARBY PARKER, INC.|
Among the companies added to the Transparency Index are Cboe Global Markets, which owns the Chicago Board Options Exchange, and Sprout Social, the provider of web-based social media management tools.
The index seeks to identify companies that are emphasizing transparency with both employees and customers. “There’s no pay to play or influence any of these companies can have,” said Paul Pagnato, chairman and founder of Transparency Invest, the company that created the Transparency Index.
Companies no longer on the Transparency Index
|BE||BLOOM ENERGY CORPORATION|
|COST||COSTCO WHOLESALE CORP.|
|DE||DEERE & CO.|
|ENPH||ENPHASE ENERGY, INC.|
|HRC||HILL-ROM HOLDINGS, INC.|
|SUMO||SUMO LOGIC, INC.|
|Z||ZILLOW GROUP, INC.|
|ZM||ZOOM VIDEO COMMUNICATIONS, INC.|
The 80 names that will stay on the list include Starbucks, Salesforce and Workday, a provider of cloud applications for human resources.
Meanwhile, 20 companies are being dropped, including Nike and Zillow Group