It seems plausibly good for the world if this existed. But for you personally, investing in AFK (or investing conventionally and donating the higher risk-adjusted returns) might be fine. See these articles:
If you wanted to make this happen, another path to success could also be to find investors with sufficient interest, then approach a white-label ETF provider and get them to set up a fund, see here.
“you have a lot of opportunity, in my mind, if you’re a charity, to say, “Look, people love giving us money.” But we could invest in ESG-style companies that fulfil our mission, or what we’re trying to do or we believe in, and the management fee can go to the charity.”
″particularly if you’re a fund where nothing else exists. For example, there’s only one African ETF. And if Africa goes gangbusters, guess who’s going to get the inflows?”
I’m in AFK for now, agree that its probably better than nothing.
Your podcast link was helpful, especially the ballpark numbers confirming roughly what I expected. The white label providers make it much easier from a legal/paperwork perspective, but it would take about: ~50k+ in startup expenses (probably higher to deal with multiple small foreign stock exchanges) ~$2.5mil in assets invested to get the ETF launched ~$20mil in assets under management to get to profitability
Overall that link together with the other reading I’ve done on white label providers the last few days have updated my idea of who could best pull this off. Background in finance and/or Africa no longer seems necessary (though would still be good). Instead fundraising skill/networks seems like the key. Still not my strength but relatively common in EA- everyone please feel free to steal the idea and run with it.
It seems plausibly good for the world if this existed. But for you personally, investing in AFK (or investing conventionally and donating the higher risk-adjusted returns) might be fine. See these articles:
https://forum.effectivealtruism.org/posts/iZp7TtZdFyW8eT5dA/a-generalized-strategy-of-mission-hedging-investing-in-evil
https://forum.effectivealtruism.org/posts/ucjaZFNrebZdZAnb9/impact-investing-is-only-a-good-idea-in-specific
If you wanted to make this happen, another path to success could also be to find investors with sufficient interest, then approach a white-label ETF provider and get them to set up a fund, see here.
Some encouraging quotes from that podcast:
“you have a lot of opportunity, in my mind, if you’re a charity, to say, “Look, people love giving us money.” But we could invest in ESG-style companies that fulfil our mission, or what we’re trying to do or we believe in, and the management fee can go to the charity.”
″particularly if you’re a fund where nothing else exists. For example, there’s only one African ETF. And if Africa goes gangbusters, guess who’s going to get the inflows?”
I’m in AFK for now, agree that its probably better than nothing.
Your podcast link was helpful, especially the ballpark numbers confirming roughly what I expected. The white label providers make it much easier from a legal/paperwork perspective, but it would take about:
~50k+ in startup expenses (probably higher to deal with multiple small foreign stock exchanges)
~$2.5mil in assets invested to get the ETF launched
~$20mil in assets under management to get to profitability
Overall that link together with the other reading I’ve done on white label providers the last few days have updated my idea of who could best pull this off. Background in finance and/or Africa no longer seems necessary (though would still be good). Instead fundraising skill/networks seems like the key. Still not my strength but relatively common in EA- everyone please feel free to steal the idea and run with it.