A new index fund aims to give small investors a 'voice' to address climate change


The "dominant approach among climate-concerned investors" has traditionally been to divest from fossil-fuel stocks, writes Robinson Meyer in The Atlantic. That may be about to change.
The hedge fund Engine No. 1, which made headlines last month when it led a shareholders' revolt at ExxonMobil and helped install a few green-energy advocates on the oil giant's board, will on Tuesday launch an exchange-traded fund that will track the performance of the 500 largest public companies in the United States, the firm told Meyer.
Meyer views the ETF as an opportunity for "average investors" to follow in Engine No. 1's footsteps and voice their concerns about climate change, potentially fulfilling his hope for a fund that aims to "reshape the market not by withdrawing money from some places and investing it in others but by engaging directly with corporate leadership and using the power of shareholder voting to push boards forward."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Ideally, Meyer wants the strategy to work "in tandem" with divestment. "Divestment should, over time, make raising money more expensive for carbon-intensive oil companies," Meyer writes, while "engagement should push companies to act in a way that makes divestment less necessary." Read more at The Atlantic.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
Wine-tasting in Tuscany
The Week Recommends From biodynamic vineyards to historic cellars, the picturesque region is a wine lover's dream
By Irenie Forshaw, The Week UK
-
Ukraine-Russia: is peace deal possible after Easter truce?
Today's Big Question 'Decisive week' will tell if Putin's surprise move was cynical PR stunt or genuine step towards ending war
By The Week UK
-
The bougie foods causing international shortages
In the Spotlight Pistachios join avocados and matcha on list of social media-driven crazes that put strain on supply chains and environment
By Harriet Marsden, The Week UK
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
By Peter Weber, The Week US
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off
By Justin Klawans, The Week US
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
By Peter Weber, The Week US
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
By Peter Weber, The Week US
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
By Peter Weber, The Week US
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine
By Peter Weber, The Week US
-
Biden expected to block Japanese bid for US Steel
Speed Read The president is blocking the $14 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns
By Peter Weber, The Week US
-
Why are home insurance prices going up?
Today's Big Question Climate-driven weather events are raising insurers' costs
By Joel Mathis, The Week US