Parnassus Investments, a pioneer in sustainable investing, this week launched its first two exchange-traded funds, the Parnassus Core Select ETF and the Parnassus Value Select ETF .
The new funds mark Parnassus’s entry into the active ETF market to offer investors access to the firm’s high-conviction, actively managed equity strategies in a convenient, tax-advantaged vehicle.
The Parnassus Core Select ETF is an actively managed ETF that seeks to achieve strong long-term returns by investing in a concentrated portfolio of approximately 25 high-quality, attractively priced U.S. large cap stocks that reflect our investment team’s highest convictions. The fund will be managed by the veteran portfolio management team of Todd Ahlsten, Benjamin Allen and Andrew Choi.
The Parnassus Value Select ETF is an actively managed ETF that seeks to achieve strong long-term returns by investing in a concentrated portfolio of approximately 25 undervalued U.S. large-cap stocks that we believe are poised to rise but are temporarily out of favor relative to their history or peers. The fund will be managed by the experienced portfolio management team of Billy Hwan and Krishna Chintalapalli.
“These new ETFs comprise our best ideas in pursuit of outperformance. They will be portfolios of about 25 stocks, as compared to our typical 40-stock portfolios,” Benjamin Allen, CEO of Parnassus Investments, said in a press release announcing the new funds. “With the launch of PRCS and PRVS, our investment process and expertise will be accessible to a new audience of ETF investors.”
Parnassus says both ETFs embody the key strengths of Parnassus’s investment approach, offering benefits for investors, including:
- Selective exposure: PRCS and PRVS provide investors with access to carefully researched selections of high-quality companies that demonstrate strong financial prospects and sustainable business practices. PRCS focuses on stocks positioned for long-term growth and durability, while PRVS focuses on resilient companies facing temporary challenges, capturing recovery opportunities to drive sustainable, long-term value.
- Simplicity and transparency: Both ETFs share the same experienced investment team, philosophy and approach as their mutual fund counterparts, making them ideal complements to a balanced portfolio.
- Investment vehicle choice: With an ETF structure, investors gain intraday trading flexibility and enhanced tax efficiency through the creation and redemption process, and daily transparency of holdings.
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