Paul Tudor Jones said Tuesday that a new exchange-traded fund about investing based on social impact could one day rival the benchmark U.S. stock index.
“I think it’s going to be a really big ETF down the road. I think it’s going to rival the S&P and the Nasdaq because I think it has both potentially, possibly, performance characteristics and you get to feel good when you own it,” the hedge fund manager said in an interview with Andrew Ross Sorkin on CNBC’s “Squawk Box.”
On Wednesday, Goldman Sachs is launching an exchange-traded fund (Ticker: JUST) using a model from Jones’ foundation, Just Capital, that scores businesses based on worker treatment, environment, products and other factors. The ETF tracks a selection of Russell 1000 companies, including Apple, Amazon.com and Bank of America.
“If you’re going to have true social change, if you’re going to have real societal betterment, it has to start with the private sector. It has to start with business,” Jones said.
The hedge fund manager pointed out that the private sector is about 40 times the size of annual philanthropic giving.
In an interview with Goldman Sachs earlier this year, Jones recommended investors stay in cash or buy commodities and “hard assets.” The hedge fund manager also said at the time there were bubbles in stocks and bonds, and predicted a rise in inflation and a surge in the U.S. 10-year Treasury yield.
Jones has a net worth of $4.5 billion, according to Forbes.
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Source: Investment Cnbc
Tudor Jones says his social impact ETF has potential to rival the S&P 500