'Anti-ESG' Constrained Capital Orphans ETF to liquidate
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The Constrained Capital ESG Orphans ETF (NYSEARCA:ORFN) will be liquidated and closed, its launch and structure partner said on Friday.
With the advent of climate change awareness over the last few years, so-called environmental, social and corporate governance (ESG) exchange traded funds have grown to become more popular and widely selected amongst the investment community.
ORFN was structured as an "anti-ESG" fund, with an aim to provide the investment community with access to equities that fall outside of the traditional ESG standards.
ORFN consists of companies that are considered to be more controversial in nature from market segments like oil and gas, tobacco, gambling, alcohol, firearms and more. Some of its holdings include Chevron (CVX), Philip Morris (PM) and Anheuser-Busch InBev (BUD).
"The Board of Trustees of the Tidal ETF Trust has decided to liquidate and close The Constrained Capital ESG Orphans ETF, based on the recommendation of the Fund’s investment adviser, Toroso Investments LLC," Tidal Financial Group said in Friday's statement.
"The Board concluded that liquidating and closing the Fund would be in the best interest of the Fund and its shareholders," the Group added, without giving further details on the reason behind the closure.
ORFN will cease trading on the NYSE Arca and will be closed to purchase by investors on June 26.