Stance ESG US Large Cap Core
A fossil-fuel-free U.S. large-cap strategy, systematically screened on 25 material risk factors and risk-weighted to eliminate mega-cap concentration.
The strategy's investment objective is to outperform the S&P 500 Equal Weight on a total return and risk-adjusted basis, net of fees. The strategy combines quantitative factor modeling, sustainability screening, and risk-optimized construction to build a diversified US large-cap portfolio.
Stance ESG US Large Cap Core is an active, factor-driven strategy with a deliberate tilt toward mid-cap and value characteristics, constructed to produce a portfolio that diverges meaningfully from the S&P 500 in both composition and behavior.
The process begins with a sustainability screen applying 25 material risk factors from Corporate Knights across the Solactive US Large & Mid Cap universe, excluding fossil fuel producers and weapons manufacturers and minimizing exposure to companies with significant litigation or regulatory risk. A proprietary quantitative factor model then evaluates the remaining universe using fundamental financial data and historical market patterns, and a risk-optimized framework intersects both steps, targeting downside protection by minimizing tail risk and maximizing diversification.
Proxy votes are cast through As You Sow, an activist proxy advisor, whose guidelines emphasize shareholder accountability on governance, climate, and executive compensation issues.
How the portfolio is built.
Sustainability Screening
Apply 25 material risk factors via Corporate Knights across all Solactive US Large & Mid Cap constituents. Exclude fossil fuel producers and weapons manufacturers, and minimize exposure to firms with significant litigation, regulatory, or reputational risk.
Fundamental Factor Model
A proprietary machine-learning model built on academic factors and systematic system design. Fundamental financial data from company filings is combined with historical market data.
Risk-Optimized Framework
Combine proprietary parameter forecasting with an optimization process that intersects the strongest names from the sustainability screen and factor model. Optimized to minimize tail risk and maximize diversification.
Systematic model
design
Stance ESG US Large Cap Core screens the investable universe against 25 material risk factors and sustainability-related metrics before any security is considered for the portfolio. Environmental measures include energy productivity, carbon intensity, water dependence, and waste profile.
By way of example, governance criteria includes board composition, executive pay, shareholder rights, covering CEO-to-worker pay ratios, unfunded pension liabilities, safety performance, employee turnover, leadership diversity, tax transparency, and whether executive bonuses are tied to sustainability performance.
Weapons, tobacco, and thermal coal producers are excluded outright. So are companies where women are not meaningfully represented in senior management or on the board.
Data Sources:
Corporate Knights · RepRisk · Access to Nutrition Index · Access to Medicine Index · Wespath · MVIS · World Health Organization · InfluenceMap · Humane Society International · SIPRI · Norges Bank Investment Management, among others
25 Material Risk Factor Screen
Energy productivity, carbon intensity, water dependence, and waste profile.
Governance Screen
Pay ratios, pension liabilities, turnover, diversity, and tax transparency.
Hard Exclusions
Weapons, tobacco, and thermal coal producers excluded outright.
Independent Data Sources
Metrics come from third-party research, not self-reported disclosures.
The right fit for the right client.
An active, factor-driven core equity option for values-aligned clients. Built for advisors who want an actively managed alternative to cap-weighted sustainable index funds.
Direct ownership of every security, with governance criteria that go beyond typical exclusion lists to cover pay ratios, board diversity, and tax transparency. Appropriate for foundations and endowments with fossil-fuel-free, weapons-free, or values-aligned mandates.
Tax-efficient transition from appreciated conventional portfolios. In-kind funding is accepted, with position-level tax-loss harvesting available throughout the year and a step-up in cost basis at death.
Available where you already work.
30 minutes.
An honest assessment.
We’ll ask about your client base, your platforms, and the situations you’re trying to solve. We’ll tell you directly whether this strategy is the right fit.
Contact Stance CapitalPerformance data & strategy documentation
Complete performance history, portfolio characteristics, risk metrics, and compliance disclosures are available in the strategy documents below.
What makes Stance ESG US Large Cap Core different from a typical sustainable large-cap fund?
Most sustainability-screened large-cap strategies are cap-weighted, so mega-cap technology names dominate the portfolio just as they do the S&P 500. This strategy is actively managed with a deliberate tilt toward mid-cap and value characteristics, built to avoid that concentration.
What does the sustainability and governance screening process cover?
The screen applies 25 material risk factors across the investable universe, covering environmental measures like carbon intensity and water dependence alongside governance measures like CEO-to-worker pay ratios, board diversity, and tax transparency. A proprietary quantitative factor model and a risk-optimized construction step follow the initial screen.
What companies are excluded from the portfolio?
Weapons, tobacco, and thermal coal producers are excluded outright. So are companies where women are not meaningfully represented in senior management or on the board.
How are proxy votes handled, and why does that matter?
Votes are cast through As You Sow, an activist proxy advisor, rather than the ISS or Glass Lewis defaults most managers rely on. This gives the strategy a more active voice on governance and sustainability issues at the companies it holds.
Is this strategy available through my existing custodian platform?
Yes. It is available as a separately managed account through Schwab, Fidelity, Interactive Brokers, Folio Institutional, and Adhesion.
Go deeper on what drives this strategy.
This page is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any security. Investments involve risk, including potential loss of principal. Past performance is not indicative of future results. Stance Capital, LLC claims compliance with the Global Investment Performance Standards (GIPS®); the verification report is available upon request. The Stance ESG US Large Cap Core strategy is available as a separately managed account; individual account results will vary. Stance Capital, LLC is a registered investment advisor. Registration does not imply a certain level of skill or training.