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123RF/Weerapat Kiatdumrong

Toronto-based CI Investments Inc. (CI) has launched the CI First Asset MSCI World ESG Impact ETF and a mutual fund counterpart, the CI MSCI World ESG Impact Fund.

The new products are focused on investing in companies with a positive impact on environmental, social and governance (ESG) factors, the firm said in a release.

The ETF is designed to attempt to replicate the MSCI World ESG Select Impact ex Fossil Fuels Index. According to the release, the index targets large to mid-cap companies with a positive impact on ESG factors in 23 developed countries.

The ETF combines elements of thematic investing with impacting investing, and excludes companies that own fossil fuel reserves used for energy purposes, CI said. Units of the ETF began trading on the NEO Exchange on Monday.

The mutual fund will invest all, or substantially all, of its assets in unhedged common units of the ETF, CI said in the release.