Personal Finance

These 20 companies are coming to this index focused on social and environmental good

Key Points
  • The Transparency Index has unveiled its list of 100 companies for 2022.
  • The index, which ARK Investment Management is using for its first passive ETF, aims to identify companies that stay out of harmful industries and are open with employees and customers.
  • These are the 20 names being added to the list, and 20 are falling off.

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An investing index that aims to track the most transparent companies in the world is changing its holdings for 2022.

The index — called the Transparency Index — is adding 20 new companies to its list of 100 companies that exclude certain industries it deems harmful for people and the planet.

That includes alcohol, banking, chemical, confectionary, fossil fuel transportation, gambling, metals and minerals, oil and natural gas, and tobacco.

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Each company in the index has a weighting of about 1%.

The index is being used for a new ETF provided by ARK Investment Management, led by CEO and chief investment officer Cathie Wood. The ETF, called the ARK Transparency ETF, trades under the ticker CTRU, and is the company's first passive investment product.

That ETF opened at $18.41 per share on Friday, before falling by a little more than 1%. In contrast, the firms' flagship ARK Innovation ETF suffered a dramatic selloff on Thursday, due in part to rising interest rates. That fund was trading around $85 per share on Friday morning.

New companies on the 2022 Transparency Index

TickerCompany
TECHBIO-TECHNE CORP.
CDLXCARDLYTICS, INC.
CDNACAREDX, INC.
CBOECBOE GLOBAL MARKETS, INC.
CRSRCORSAIR GAMING, INC.
GTLBGITLAB INC.
NTAPNETAPP, INC.
NTNXNUTANIX, INC.
PSOPEARSON PLC
PVHPVH CORP.
QLYSQUALYS, INC.
RDWRRADWARE, LTD.
RBLXROBLOX CORP.
SONSONOCO PRODUCTS CO.
SONOSONOS, INC.
SPBSPECTRUM BRANDS HOLDINGS, INC.
SPTSPROUT SOCIAL, INC.
SHOOSTEVEN MADDEN, LTD.
SFIXSTITCH FIX, INC.
WRBYWARBY PARKER, INC.

Among the companies added to the Transparency Index are Cboe Global Markets, which owns the Chicago Board Options Exchange, and Sprout Social, the provider of web-based social media management tools.

The index seeks to identify companies that are emphasizing transparency with both employees and customers. "There's no pay to play or influence any of these companies can have," said Paul Pagnato, chairman and founder of Transparency Invest, the company that created the Transparency Index.

Companies no longer on the Transparency Index

TickerCompany
ARMKARAMARK
AVTAVNET, INC.
BEBLOOM ENERGY CORPORATION
COSTCOSTCO WHOLESALE CORP.
DEDEERE & CO.
DIODDIODES, INC.
ENPHENPHASE ENERGY, INC.
GMABGENMAB A/S
HRCHILL-ROM HOLDINGS, INC.
INFNINFINERA CORP.
IDCCINTERDIGITAL, INC.
NVTAINVITAE CORP.
MTLSMATERIALISE N.V.
NKENIKE, INC.
SYKSTRYKER CORP.
SUMOSUMO LOGIC, INC.
SUZSUZANO S.A.
TRMBTRIMBLE, INC.
ZZILLOW GROUP, INC.
ZMZOOM VIDEO COMMUNICATIONS, INC.

The 80 names that will stay on the list include Starbucks, Salesforce and Workday, a provider of cloud applications for human resources.

Meanwhile, 20 companies are being dropped, including Nike and Zillow Group