What defines all Next Economy portfolios?

 

Public Securities

Markets lag the economy, so a forward-looking investment manager can buy companies poised to gain market share by growing rapidly. And since stocks and bonds are typically an investor’s largest investments they are their best opportunity to create change.

Solutions Creators

Every company is selected for its ability to deliver innovative solutions that simultaneously address system-level risks–climate change, resource degradation, widening inequality, and human disease burdens–and improve economic productivity.

Fossil Fuel Free

Securities of fossil fuel companies represent substantial portfolio risk proportionate to the global risks caused by their products. We never invest in fossil fuels extractors, suppliers, or major demand drivers, because they are not a growing part of the economy.

Diversified Growth Companies

We seek companies delivering solutions wherever we can find them–across the globe, in firms of all sizes, and in every industry. Green Alpha’s philosophy is simple: seek enterprises creating scalable and rapidly evolving, economically-competitive solutions.

Fundamentals-Driven

The price you pay matters. Once we’ve found genuinely sustainable companies, we vet their business strength, growth prospects, margins, capital allocation priorities, and the price one has to pay for the stock versus near-term growth expectations.

Which Next Economy portfolio matches my investment goals?

It’s important to know what all Green Alpha portfolios have in common and also to understand what’s unique about each.

We have one investment process. All candidates go through our proprietary research and scoring processes. Those companies receiving sufficient scores become constituents in the Next Economy Index and are eligible for selection in our other portfolios.

  1. Next Economy Index
    ~152 stocks • Inception 12/31/2008

  2. Other Next Economy Projects

  1. Social Index
    ~114 stocks • Inception 12/31/2015

    1. DiversiTerra
      45-65 stocks • Inception 3/31/2018

  2. Growth & Income
    30-50 stocks • Inception 12/31/2012

  3. Next Economy Select
    45-65 stocks • Inception 3/31/2013

  4. Sierra Club Green Alpha
    30-50 stocks • Inception 12/31/2010

  5. Next Economy Income
    up to 70 bonds • Inception 6/30/2022

  6. Other Next Economy Projects

    1. Next Economy Fixed Income
      June 30, 2022

Investment Strategy
Overview
Add’l Details
Vehicle(s)
Security Type
# Holdings
U.S. vs. Int’li
Dividend/Income Yieldii

Next Economy Index
  • Active research and stock selection
  • Passively managed through an annual market cap-based rebalance
  • Our largest basket of Next Economy innovators and longest performance track record
Separate Accounts
Equities

~152
  • 80% U.S. Domicile
  • 20% Non-U.S.
1.02%

Social Index
  • Active research and stock selection
  • Industry-leading rigorous gender-lens, diversity, and social inclusion criteria applies to the Next Economy thesis creates a powerful combination of innovative companies led by diverse, empowered teams
Separate Accounts
Equities
~114
  • 90% U.S. Domicile
  • 10% Non-U.S.
0.98%

Next Economy Select
  • High conviction stock picks with an extra emphasis on current share prices relative to growth expectations
  • Low investment minimum fund vehicle enables democratized access to institutional-quality investing
NXTE ETFiii
and Separate Accounts

 
Equities
45 – 65
  • 68% U.S. Domicile
  • 32% Non-U.S.
2.06%

Growth & Income 
  • Active research, stock selection, and portfolio management
  • Above-market dividend income and relatively low volatility, while seeking long-term capital preservation and growth
Separate Accounts
Equities
25 – 45
  • 69% U.S. Domicile
  • 31% Non-U.S.
3.37%

Sierra Club® Green Alpha
  • Active research, stock selection, and portfolio management
  • Our forward-looking research and the Sierra Club’s proprietary environmental and social criteria applied to each candidate’s full operating history
Separate Accounts
Equities
30 – 50
  • 74% U.S. Domicile
  • 26% Non-U.S.
2.20%

DiversiTerra
  • Active research, stock selection, and portfolio management
  • Invests at the intersection of the most diverse companies in the Next Economy universe that are foremost on Green Alpha’s conviction list
  • DiversiTerra is a concentrated subset of our Social Index portfolio
Separate Accounts
Equities
45 – 65
  • 84% U.S. Domicile
  • 16% Non-U.S.
1.65%

Next Economy Income
  • Co-managed by Green Alpha and Uniplan Investment Counsel
  • Portfolio constituents pass both Green Alpha’s top-down sustainability and management quality analysis, and Uniplan’s credit quality and bond analysis.
Separate Accounts
Fixed Income
Up to 70
100% U.S. Domicile
3.65%

HelpAfter conducting research throughout our website, please email Betsy Moszeter with any specific questions that remain open or to schedule a time to talk about your investment options.

iAll statistics above are as of September 30, 2024
iiDividend Yield is the average of the trailing two-year period. Fixed Income Yield stated above is Current Yield. See the Next Economy Income Portfolio Snapshot for the current Yield-to-Maturity.
iiiThe AXS Green Alpha ETF (NXTE) is distributed by ALPS Distributors, Inc., which is not affiliated with AXS Investments or Green Alpha Investments. There are risks involved with investing, including possible loss of principal. Past performance does not guarantee future results. Diversification does not ensure profits or prevent losses. Investors should carefully consider the investment objectives, risks, charges, and expenses of the fund before investing.  Please see the Fund’s website for important documents, such as the prospectus, and contact information to learn more about the AXS Green Alpha ETF.  A prospectus should be read carefully before investing.