Your sustainable ETF

Both follow a sustainability-focused investment strategy, but with different emphases. With Tomorrow, you can choose between two approaches for how sustainability factors should be considered in investment decisions.

The Tomorrow Fund is a sustainable equity fund that relies on exclusion and positive screening. It invests in companies selected according to defined sustainability criteria, excludes climate-damaging sectors such as coal and oil, and aligns with the climate goals of the Paris Agreement. It is classified under Article 9 of the SFDR and has a sustainability objective as its investment purpose.

The Inyova Impact ETF focuses on active ownership: It can also invest in large, established companies that have leverage and a willingness to change. Inyova relies on dialogue and voting rights to raise sustainability issues with these companies. The ETF promotes environmental or social characteristics and is classified under Article 8 of the SFDR.

In short: The Tomorrow Fund asks, “Does the company meet our sustainability criteria so that we can consider investing in it?” The Inyova Impact ETF asks, “Is the company ready for change—and how can we, as shareholders, support this development through the exercise of our voting rights?”

Both of these strategies make sense and are based on different theories about how to use capital to bring about the most change.

Important Note: Sustainability characteristics or SFDR classifications are not an indicator of past performance and do not rule out the risk of loss. The exact methodology, criteria, and risks can be found in the KID/prospectus and SFDR disclosure documents.

Active Ownership means that shareholders use their rights as owners to push companies toward more sustainability. This works in three ways: through engagement (direct dialogue with the company), through voting at the general meeting, and through shareholder activism (e.g. submitting proposals or speaking out publicly). This approach is based on the "Active Ownership 2.0" stewardship framework from the UN-supported investor initiative PRI – it's built on the idea that investors should use their influence more consistently to achieve real, measurable progress on issues like climate change, rather than just documenting individual process steps.

With an equity fund and an active ETF, a fund management team makes the investment decisions – it deliberately selects companies. A passive ETF doesn't make its own decisions; it automatically tracks an index (e.g. the MSCI World). The difference between a fund and an ETF lies in trading: funds are traded through a bank or fund company, while ETFs trade continuously on the stock exchange. The Inyova Impact ETF combines both: active selection like a fund, with the flexibility of an exchange-traded ETF.

Inyova combines clear exclusion criteria with threshold values for controversial industries.

Hard exclusions (0%) for industries with no gray area:

• Controversial weapons (landmines, cluster munitions, ABC weapons, nuclear weapons)

• Animal testing (for non-pharmaceutical purposes, without 3R principles)

• Stem cell research (reproductive cloning)

• Predatory lending

• Tobacco production

Threshold values for controversial industries, where Inyova deliberately doesn't start at zero:

• Coal 1%, oil 5%, gas 10% (conventional extraction/processing/distribution)

• Unconventional fossil fuels (Arctic/deep-sea drilling, fracking, oil sands) 5%

• Services for coal/oil/gas extraction 10%

• Conventional weapons 5%

• Nuclear power: production 5%, services (maintenance, disposal) 10%

• Alcohol 5%

• Gambling: operations 5%, services 10%

• Pornography 5%

• Factory farming/animal welfare: 0%, 5%, or 10%, depending on activity

• Red meat (products) 50%

• Genetic engineering (GMOs) 5%

• Palm oil 5% (if RSPO certification is below 80% and no NDPE policy is in place)

• Pesticides (WHO category "highly" or "extremely hazardous") 5%

• Private prisons 5%

• Biomass 50%

In addition, regardless of thresholds: credible or confirmed violations of the UN Global Compact or OECD Guidelines lead to exclusion if no remedial action is taken. Inyova also conducts a final qualitative review of every company – even if the numerical criteria are met, a company can be rejected if it doesn't align with the mission.

You can find more details about Inyova's exclusion guidelines here.