ETFs

Funds that track custom-built indexes often seek exposure to securities based on factors like ESG and strategies that would typically be actively managed.

A major driver of growth has been the “increased awareness” of advantages like tax efficiency, liquidity and transparency, according to Bank of America.

Competitors such as Merrill Edge have taken similar measures on commissions.

The four new types of funds use a so-called proxy basket and will publish some information about their portfolios every day.

The fund will track an index that divides the industry into five categories: pharmaceuticals, testing and analytics, cultivators, hemp and ancillary business.

Jeff Smith's dismissal was first announced in a memo by CEO Larry Fink and President Rob Kapito, who only said the executive had violated corporate policy.

"It's going to become increasingly more important for financial professionals to understand the potential benefits of sustainable investing," an exec says.

“It’s going to become increasingly more important for financial professionals to understand the potential benefits of sustainable investing,” an executive says.

Brokerage firms that sell the funds must determine whether clients understand their risks — a requirement that could discourage offering them at all.

Like other bank-owned asset managers, the division is under pressure from new regulations such as MIFID II and a protracted shift toward passive investing.