The Activist Investor That Beat Exxon Is Trying To Reinvent The Index Fund

The Activist Investor That Beat Exxon Is Trying To Reinvent The Index Fund

An activist fund that beat Exxon Mobil is now offering a low cost index fund to investors that can usher in corporate change. (Getty Images) Engine No. 1, the small activist investment firm that won a total of three seats on ExxonMobil's board of directors earlier this month, is launching an exchange traded fund that aims to reshape the broad market index fund. Its Engine No. 1 Transform 500 ETF will mimic a broad market index fund at a low cost, while also giving investors a potentially powerful say in corporate governance. At an expense ratio of just five basis points annually, or 0. 05%, Engine No. 1 will provide active corporate governance oversight on the constituent companies held in the ETF by a team of investors that just scored one the biggest proxy battle wins ever witnessed in Corporate America. Engine No. 1 promises that like its campaign against Exxon, it will hold companies accountable for their environmental and social impacts through active voting on shareholder issues. The firm's investment team will also actively monitor boardrooms on their performance on issues like reducing their environmental footprint, and work as active shareholders improve their overall long-term financial performance. In addition