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    Table of Contents
    Table of Contents
    • VEGN
    • About the Fund
    • Cost to the Investor

    The Vegan ETF - All About How the VEGN Fund Works

    By
    Nathan Reiff
    Nathan Reiff
    Full Bio
    Nathan Reiff has been writing expert articles and news about financial topics such as investing and trading, cryptocurrency, ETFs, and alternative investments on Investopedia since 2016.
    Learn about our editorial policies
    Updated December 11, 2023
    Reviewed by
    Andy Smith
    Image
    Reviewed by Andy Smith
    Full Bio
    See More

    Andy Smith is a Certified Financial Planner (CFP®), licensed realtor and educator with over 35 years of diverse financial management experience. He is an expert on personal finance, corporate finance and real estate and has assisted thousands of clients in meeting their financial goals over his career.

    Learn about our Financial Review Board
    Fact checked by
    Jiwon Ma
    Jiwon Ma
    Fact checked by Jiwon Ma
    Full Bio

    Jiwon Ma is a fact checker and research analyst with a background in cybersecurity, international security, technology, and privacy policies. Before joining Investopedia, she consulted for a global financial institution on cybersecurity policies and conducted research as a Research Analyst at the Belfer Center for Science and International Affairs.

    Learn about our editorial policies
    Part of the Series
    Types of ETFs Explained
    Exchange-Traded Fund (ETF) Types and Benefits Explained
    What's an ETF
    1. 6 Common ETF Types for Your Portfolio
    2. An Inside Look at ETF Construction
    3. Custom Basket ETFs
    4. Single-Stock ETF Definition
    5. Passive ETF: What It Means, How It Works
    Types and Details
    1. Smart Beta ETF: Definition, Types, Example
    2. Diamonds ETF: Meaning, Popularity, Statistics
    3. No-Fee ETF: What It Means, History, Criticism
    4. Value vs. Growth ETFs: How Do You Choose?
    5. Benefits and Risks of Thematic ETFs
    6. Factor ETFs: Meaning, Effectiveness, Examples
    7. Benefits of a Covered Call ETF
    8. Leveraged ETFs: The Potential for Bigger Gains—and Bigger Losses
    9. Ultra ETF: What It Means, Benefits, Limitations
    Equity Funds
    1. ETFs For Sector Rotation Strategies
    2. What Is a Sector ETF, How Do You Invest in One?
    3. Services Sector ETF: Meaning, Examples, Pros and Cons
    4. Airline Industry ETF
    5. Auto Industry ETF: What It is, How It Works, Example
    6. What Common ETFs Track the Banking Sector?
    7. Which Leveraged ETFs Track the Banking Sector?
    8. Biotechnology ETF: What It Is and How To Invest
    9. Communication Industry ETF Definition
    10. Food Industry ETF: What It is, How it Works, Pandemic Impact
    11. Gaming Industry ETF: What It is, How It Works, Examples
    12. Insurance Industry ETF: Meaning, Example, Pros and Cons
    13. Retail Industry ETF: What It is, How It Works
    Real Estate and Specialty ETFs
    1. A Look at One of the Largest Sustainable Investing ETFs
    2. ETFs for the Driverless Car Revolution
    3. Emerging Market ETF: Meaning, Pros and Cons
    4. The Vegan ETF - All About How the VEGN Fund Works
      CURRENT ARTICLE
    5. REIT ETF: What it is, How it Works, Special Considerations
    Currency Funds
    1. Currency ETF: Meaning, Special Considerations, Examples
    2. How Currency-Hedged ETFs Work
    Inverse ETFs
    1. Inverse ETF: Definition, Comparison to Short Selling, and Example
    2. Inverse ETFs Can Lift a Falling Portfolio
    3. The Risks of Investing in Inverse ETFs

    There is an exchange-traded fund (ETF) for everything. With each year, the axiom proves ever more true. ETFs have exploded in number, the field-grown crowded with thousands of investment options. Each fund aims to offer a low-cost portfolio of assets, often linked together by theme, trend or other commonality.

    VEGN

    Investors worried about climate change or cruelty to animals or both now have an ETF that caters to this theme: the U.S. Vegan Climate ETF (VEGN). The fund is provided by Beyond Investing and Beyond Advisors IC. Beyond Investing lists a Florida mailbox as its address, while Beyond Advisors IC is based in Jersey.

    Key Takeaways

    • The U.S. Vegan Climate ETF is the first fund to specialize in vegan investments.
    • The fund invests in environmentally-friendly and cruelty-free companies such as Microsoft, Apple, and Meta (formerly Facebook).
    • The fund has an expense ratio of 0.60%.
    • As of December 11, 2023, the ETF held approximately $80.74 million in assets.

    About the Fund

    According to the fund's prospectus, it aims to "address the concerns of vegans, animal lovers, and environmentalists by avoiding investments in companies whose activities directly contribute to animal suffering, destruction of the natural environment, and climate change." This puts the U.S. Vegan Climate ETF in a growing class of socially responsible funds.

    To find index members, the U.S. Vegan Climate ETF starts with the Solactive U.S. Large Cap Index, which consists of approximately 500 companies. From there, the fund removes any company involved with animal testing, animal-derived products, animal farming, and animals used in sports or entertainment. Also excluded are fossil fuel companies, those that burn fossil fuels for energy production, and any company with a significant carbon footprint or history of environmental destruction. Tobacco, military, and defense companies are eliminated, along with companies tied to human rights abuses.

    As of September 30, 2023, the U.S. Vegan Climate ETF held 248 companies weighted by market capitalization. Top holdings include NVIDIA (NVDA), TESLA (TSLA), and UnitedHealth Group (UNH). The fund held approximately $80.74 million in assets as of December 11, 2023.

    A three-person team is responsible for curating the fund. They have prior ETF experience at Charles Schwab, BlackRock, and State Street.

    Cost to the Investor

    As is often the case with vegan alternatives to traditional products and services, investors can expect to pay a premium for their investment in the U.S. Vegan Climate ETF. The expense ratio is 0.60%, compared with an average cost of 0.39% for socially responsible ETFs.

    Still, the focus on social responsibility is enough to draw many eager investors, including a high proportion of millennial investors looking to reap the rewards of investing without compromising their values. About 207 socially responsible ETFs collectively hold assets of approximately $94 billion, showing that investors as a group take this approach quite seriously.

    Article Sources
    Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
    1. Beyond Investing. "US Vegan Climate ETF (VEGN) Prospectus, November 30, 2023," Page 17.

    2. Beyond Investing. "US Vegan Climate ETF (VEGN) Prospectus, November 30, 2023," Pages 2.

    3. Beyond Investing. "US Vegan Climate ETF (VEGN) Prospectus, November 30, 2023," Pages 2-3.

    4. Beyond Investing. "US Vegan Climate ETF Fact Sheet September 30, 2023." Page 1.

    5. Beyond Investing. "US Vegan Climate ETF (VEGN)."

    6. Beyond Investing. "US Vegan Climate ETF (VEGN) Prospectus, November 30, 2023," Page 11.

    7. ETF.com. "Socially Responsible ETF Overview.

    Ready to Take the Next Step?
    The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
    Part of the Series
    Types of ETFs Explained
    Exchange-Traded Fund (ETF) Types and Benefits Explained
    What's an ETF
    1. 6 Common ETF Types for Your Portfolio
    2. An Inside Look at ETF Construction
    3. Custom Basket ETFs
    4. Single-Stock ETF Definition
    5. Passive ETF: What It Means, How It Works
    Types and Details
    1. Smart Beta ETF: Definition, Types, Example
    2. Diamonds ETF: Meaning, Popularity, Statistics
    3. No-Fee ETF: What It Means, History, Criticism
    4. Value vs. Growth ETFs: How Do You Choose?
    5. Benefits and Risks of Thematic ETFs
    6. Factor ETFs: Meaning, Effectiveness, Examples
    7. Benefits of a Covered Call ETF
    8. Leveraged ETFs: The Potential for Bigger Gains—and Bigger Losses
    9. Ultra ETF: What It Means, Benefits, Limitations
    Equity Funds
    1. ETFs For Sector Rotation Strategies
    2. What Is a Sector ETF, How Do You Invest in One?
    3. Services Sector ETF: Meaning, Examples, Pros and Cons
    4. Airline Industry ETF
    5. Auto Industry ETF: What It is, How It Works, Example
    6. What Common ETFs Track the Banking Sector?
    7. Which Leveraged ETFs Track the Banking Sector?
    8. Biotechnology ETF: What It Is and How To Invest
    9. Communication Industry ETF Definition
    10. Food Industry ETF: What It is, How it Works, Pandemic Impact
    11. Gaming Industry ETF: What It is, How It Works, Examples
    12. Insurance Industry ETF: Meaning, Example, Pros and Cons
    13. Retail Industry ETF: What It is, How It Works
    Real Estate and Specialty ETFs
    1. A Look at One of the Largest Sustainable Investing ETFs
    2. ETFs for the Driverless Car Revolution
    3. Emerging Market ETF: Meaning, Pros and Cons
    4. The Vegan ETF - All About How the VEGN Fund Works
      CURRENT ARTICLE
    5. REIT ETF: What it is, How it Works, Special Considerations
    Currency Funds
    1. Currency ETF: Meaning, Special Considerations, Examples
    2. How Currency-Hedged ETFs Work
    Inverse ETFs
    1. Inverse ETF: Definition, Comparison to Short Selling, and Example
    2. Inverse ETFs Can Lift a Falling Portfolio
    3. The Risks of Investing in Inverse ETFs
    Read more
    • Investing
    • ETFs
    Partner Links
    Ready to Take the Next Step?
    The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.

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