An ETF is a fund that can be purchased and sold on an exchange like a stock (hence the name). ETFs give you a way to buy and sell a basket of stocks without having to buy each stock individually.
HOW ETFs WORK
An ETF is purchased and sold like a company stock during the day when the stock exchanges are open. Like a stock, an ETF has a ticker symbol (Ours is HKND) and intraday price data can be easily obtained during the course of the trading day.
Unlike a company stock, the number of shares outstanding of an ETF can change daily because of the continuous creation of new shares and the redemption of existing shares. The ability of an ETF to issue and redeem shares on an ongoing basis keeps the market price of ETFs in line with their underlying securities.
Why are ETFs so Popular?
Unlike owning a single stock, an ETF is made up of a basket of different preselected securities. As an investor in an ETF, you are less reliant on the performance of any single stock which helps minimize your potential losses. In finance lingo we call this diversification.
Potentially Lower Fees
One of the potential advantages of ETFs is that they generally have lower fees than Mutual Funds. For investors, the lower this fee the better! Coincidently the fee for our HKND ETF is just 11 basis points, which means that for every $10,000 you invest, you only get charged $11 annually.
Potentially Lower Fees
Why Humankind US Stock ETF?
At Humankind, we believe our ETF is an effective tool to change how company performance is analyzed. By covering approximately 1000 companies, we look beyond corporate profitability and focus on how a company builds a better society and planet – and we do it in a quantitative way.
Our approach aims to safeguard both the financial interests of investors, and the economic interests of humanity more broadly. Check us out!
Learn more about investing opportunities with Humankind
Investors should carefully consider the investment objectives, risks, charges and expenses of the Humankind US Stock ETF. This and other important information about the Fund is contained in the prospectus, which can be obtained by calling 888-557-6692. The prospectus should be read carefully before investing. The Humankind US Stock ETF is distributed by Northern Lights Distributors, LLC member FINRA/SIPC. Humankind Investments, LLC and Northern Lights Distributors, LLC are not affiliated. 6867-NLD-08292022
Important Risk Information
The Fund is a recently organized, diversified management investment company with limited operating history.
There is no assurance that the Fund will achieve its investment objective, and you can lose money investing in this Fund. The Fund is subject to Socially Responsible Investment (SRI) risk, which is the chance that stocks screened by the Index Sponsor for SRI criteria generally will underperform the stock market as a whole or that the particular stocks selected for the Index will, in the aggregate, trail returns of other mutual funds or ETFs screened for SRI criteria. In tracking the Index, the Fund may, from time to time, invest more heavily in companies in a particular economic sector or sectors, which would subject the Fund to proportionately higher exposure to the risks of that sector. The profitability of companies in the healthcare sector, as traditionally defined, including healthcare equipment and services companies, may be affected by government regulations and government healthcare programs, increases or decreases in the cost of medical products and services, an increased emphasis on outpatient services, demand for medical products and services and product liability claims, among other factors.
Humankind Benefit Corporation (the “Company”), of which the Fund is a series of the Company, is structured as a Maryland Benefit Corporation in order to pursue the goal of making a material, positive impact on humanity. The purpose of the Company is, in part, to promote through its investments the creation of a general public benefit and the specific public benefit of supporting socially optimal economic outcomes. The Fund is subject to Benefit Corporation Risk. As such, the interest of investors, customers, employees, and members of society at large may be viewed or weighed differently. As a benefit corporation, there can be no assurance that the Company or the Fund will create (i) a material, positive impact on humanity, society or the environment, or (ii) a specific public benefit through the support of socially optimal economic outcomes.
Investors in small- and medium-sized companies typically take on greater risk and price volatility than they would by investing in larger, more established companies. The value of your investment in the Fund is based on the values of the Fund’s investments, which may change due to economic and other events that affect markets generally, as well as those that affect particular regions, countries, industries, companies or governments. Although the Fund’s shares are approved for listing on the NYSE Arca (the “Exchange”), there can be no assurance that an active trading market will develop and be maintained for Fund shares. Although Fund shares are listed for trading on the Exchange, there can be no assurance that an active trading market for such shares will develop or be maintained. The Fund is not actively managed and therefore would not sell an equity security due to current or projected underperformance of a security, industry or sector, unless that security is removed from the Index.
A company’s Humankind Value is an estimate of how much value the company creates for humankind and is published annually. It is based on a quantitative analysis that calculates the comprehensive economic value of a company based not only upon its financial performance metrics but also on the costs and benefits to society from conducting its business. This calculation also attempts to take into account the Humankind Value of the company’s critical supply chain partners. The components of the calculation include: (i) Investor Value, which is the estimated value to investors on the basis of multi-year profitability; (ii) Consumer Value, which is the estimated value to customers based on the offering of a product or service; (iii) Employee Value, which is the estimated value to employees based on their salaries, bonuses and benefits; and (iv) Societal Value, which is the estimated unaccounted costs and benefits to society from the operation of the company’s business.
Additional disclosure for NYSE's What's the Fund video: This communication is provided for informational purposes only and expresses views of Humankind Investments, LLC (Humankind), an Investment Adviser. There is no guarantee that any investment strategy will achieve its objectives, generate profits, or avoid losses. Humankind’s social responsibility based approach to investing may not produce desired results and could result in underperformance compared with other investments. Any reference to the “Humankind Value” approach is provided for illustrative purposes only and indicates a general framework of guiding principles that inform Humankind’s overall investment process. Investing involves risk including possible loss of principal. Past performance does not guarantee future results.