Global X Conscious Companies ETF

KRMA

Market cap $117M

NEW YORK--(BUSINESS WIRE)---- $CPTL--The renamed Global X Morningstar Capital Allocation Leaders ETF (CPTL) aims to invest in companies that exhibit strong capital allocation practices.

The Global X Conscious Companies ETF was the first ETF to utilize the multi-stakeholder operating system, which links a company's success to its relationships with five key stakeholders. However, I found it strange that nearly all of the market's most influential stocks qualified. Moreover, KRMA's equal-weighting scheme makes crucial exceptions for the mega-caps. Calling KRMA "stakeholder-friendly" may be good marketing, but it should not be used to justify its 0.43% expense ratio. As a result, I've assigned KRMA a "sell" rating.