Stance Sustainable Beta
An equal-weight sustainable equity strategy with certified Scope 1 & 2 carbon neutrality
Stance Sustainable Beta tracks the Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free Index, an equal-weight portfolio of approximately 100 fossil-fuel-free U.S. large-cap companies spanning all major sectors. The strategy carries a certified carbon-neutral designation. Stance Capital pays for the annual carbon assessment and offsets directly, so the cost is never passed to the fund or its investors.
A Different Type of Core Equity Strategy.
Stance Sustainable Beta is an index-tracking strategy that provides diversified U.S. large-cap equity exposure through an equal-weight portfolio of approximately 100 fossil-fuel-free companies. Equal weighting eliminates the mega-cap concentration that dominates traditional cap-weighted approaches, giving each holding roughly the same impact on returns.
The underlying index, the Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free Index, was developed in 2017 and measures the performance of companies drawn from the Solactive US Large & Mid Cap universe, covering approximately the largest 85% of U.S. free-float market capitalization. The index is reconstituted quarterly, maintaining equal weighting across 100 positions, with sector weights mirroring the broader Solactive universe.
Eligible companies are evaluated using 100+ metrics from Corporate Knights Research. Screening excludes companies involved in fossil fuels, fossil-fired utilities, weapons, tobacco, and other prohibited industries, as well as those failing to meet standards across environmental impact, human rights, diversity, and ethical business practices.
How the portfolio is built.
Universe Definition
Begin with the 1,000 largest US-listed companies by market capitalization. This is the fulluniverse subject to all screens.
Sustainability Screening
Apply 125 proprietary sustainability criteria. Exclude fossil fuel producers, weapons manufacturers, and other categories structurally incompatible with the strategy’s mandate.
Equal Weighting
Assign equal weight (~1%) to each eligible company. No single holding, sector, or mega-cap name dominates.
Quarterly Rebalancing
Restore equal weights each quarter, systematically trimming outperformers and adding to underperformers. A disciplined, repeatable process without active judgment calls.
Carbon neutral.
Not just fossil-free.
Excluding fossil fuels reduces a portfolio’s carbon intensity significantly, but it does not achieve zero. Stance Sustainable Beta goes further: the strategy’s residual Scope 1 and Scope 2 emissions footprint is calculated annually by Ethos, and Stance purchases certified carbon credits to offset it entirely.
Those offsets come from Holganix’s HGX regenerative agriculture program: US Midwest farmers who implement regenerative agriculture practices including no-till farming and cover crops that sequester carbon in soil while growing corn, soybeans, and wheat. These practices reduce fertilizer use by 40% according to Holganix HGX program. Farmers receive per-acre compensation for participating in the program and impementing the required soil-health practices.
Stance pays for the offsets. Not the portfolio. Not the investor.
“Partnering with HGX has been a win-win: we gained high-quality, verifiable carbon removals we can trust, while supporting farmers and rural communities where we invest.” Bill Davis, Founder & Portfolio Manager, Stance Capital
Holganix HGX Regenerative Agriculture
3M+ US acres enrolled · 1,000+ American farmers · per-acre compensation for farmers.
Ethos Carbon Neutral Certification
Annual independent calculation of Scope 1 & Scope 2 emissions across every holding. Net Emissions = Certified Footprint − Certified Offsets = 0.
Stance Pays, Not Investors
The cost of carbon offset certification is borne by Stance as a firm commitment. Not charged to the portfolio or reflected in investor fees.
125 Proprietary Sustainability Criteria
Screening that reaches well beyond fossil-fuel exclusion, covering environmental impact, labor practices, governance, and product ethics across the full universe.
The right fit for the right client.
Core equity replacement for values-aligned clients at any account size
Available as a separately managed account or model portfolio through Fidelity, Schwab, TD Ameritrade, Orion, SMArtX, and Envestnet. No minimum for model delivery.
Mission-aligned equity with daily transparency and custom criteria
Direct ownership of every security. Exclusion criteria customized to your investment policy statement. Appropriate for conservation, fossil-free, and values-aligned mandates.
Tax-efficient transition from appreciated conventional portfolios
In-kind funding accepted. Position-level tax-loss harvesting throughout the year. Step-up in basis at death. For deeply appreciated accounts, a Section 351 exchange may allow a tax-deferred transition, subject to review by qualified tax counsel. Stance’s role is limited to investment management.
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 Sustainable Beta different from a typical equity index?
Market-cap weighting, the standard construction method for most equity indices, means the largest companies dominate the portfolio. Stance Sustainable Beta uses equal weighting instead, so position size reflects the investment thesis, not market size.
How is the strategy's carbon neutrality certified, and by whom?
Ethos independently calculates the portfolio's Scope 1 and Scope 2 emissions each year. Stance then purchases certified carbon offsets equal to that footprint, bringing net emissions to zero.
Who pays for the carbon offset certification, the investor or the firm?
Stance covers the cost of the annual certification assessment and the carbon offsets directly. It is not charged to the portfolio or reflected in investor fees.
How often is the portfolio rebalanced?
The portfolio rebalances quarterly to restore equal weighting across all holdings. This systematically trims outperforming positions and adds to underperforming ones without discretionary judgment calls.
Is this strategy available through my existing custodian platform?
Yes. Stance Sustainable Beta is available as a separately managed account on major custodial platforms including Schwab, Fidelity, LPL, First Affirmative, Adhesion, and SMArtX, with model delivery also available for advisors deploying at scale.
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. Carbon-neutral certification reflects the methodology and standards of Ethos as of the date of certification and is subject to annual renewal. Read more about the Holganix HGX program statistics here. The Stance Sustainable Beta 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.