SAN FRANCISCO--(BUSINESS WIRE)--Parnassus Investments, a pioneer in sustainable investing, today announced the launch of its first two exchange-traded funds (ETFs), the Parnassus Core Select ETF (NYSE: PRCS) and the Parnassus Value Select ETF (NYSE: PRVS). The new funds mark Parnassus’s entry into the active ETF market to offer investors access to the firm’s high-conviction, actively managed equity strategies in a convenient, tax-advantaged vehicle.
The Parnassus Core Select ETF is an actively managed ETF that seeks to achieve strong long-term returns by investing in a concentrated portfolio of approximately 25 high-quality, attractively priced U.S. large cap stocks that reflect our investment team’s highest convictions. The fund will be managed by the veteran portfolio management team of Todd Ahlsten, Benjamin Allen and Andrew Choi.
The Parnassus Value Select ETF is an actively managed ETF that seeks to achieve strong long-term returns by investing in a concentrated portfolio of approximately 25 undervalued U.S. large cap stocks that we believe are poised to rise but are temporarily out of favor relative to their history or peers. The fund will be managed by the experienced portfolio management team of Billy Hwan and Krishna Chintalapalli.
“Over our 40-year history, Parnassus has earned a reputation for high-conviction stock picking. These new ETFs comprise our best ideas in pursuit of outperformance. They will be portfolios of about 25 stocks, as compared to our typical 40-stock portfolios,” said Benjamin Allen, CEO of Parnassus Investments. “With the launch of PRCS and PRVS, our investment process and expertise will be accessible to a new audience of ETF investors.”
Both ETFs embody the key strengths of Parnassus’s investment approach, offering benefits for investors, including:
- Selective Exposure: PRCS and PRVS provide investors with access to carefully researched selections of high-quality companies that demonstrate strong financial prospects and sustainable business practices. PRCS focuses on stocks positioned for long-term growth and durability, while PRVS focuses on resilient companies facing temporary challenges, capturing recovery opportunities to drive sustainable, long-term value.
- Simplicity and Transparency: Both ETFs share the same experienced investment team, philosophy and approach as their mutual fund counterparts, making them ideal complements to a balanced portfolio.
- Investment Vehicle Choice: With an ETF structure, investors gain intraday trading flexibility and enhanced tax efficiency through the creation and redemption process, and daily transparency of holdings.
This strategic move into the ETF market enhances Parnassus’s ability to meet the evolving needs of investors with actively managed ETF solutions focused on quality and long-term growth. These ETFs will improve tax and cost efficiency, increasing the opportunity to help long-term investors compound their wealth responsibly.
For more information, please visit www.parnassus.com/etfs.
About Parnassus Investments
Parnassus Investments is a research-driven investment boutique founded in 1984 on the belief that a well-managed responsible investment strategy could outperform traditional approaches. It offers a focused set of eight highly active U.S. equity and fixed income funds. Its investment team carefully selects a small number of companies for its portfolios, investing in high-quality businesses they believe have increasingly relevant products or services, durable competitive advantages, strong management teams and sustainable business practices. Headquartered in San Francisco, California, Parnassus has 81 employees and $47.9 billion in assets under management as of September 30, 2024. For more information, please visit www.parnassus.com and follow us on LinkedIn.
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ESG investing risk refers to the risk stemming from the environmental, social, and governance factors that the Fund applies in selecting securities. The Funds seek to invest in high quality companies with sustainable business practices and to avoid investments in companies that do not meet its quality expectations. This may affect the Funds' exposure to certain companies or industries and cause the Funds to forego certain investment opportunities. The Funds are non-diversified under the Investment Company Act and employs a concentrated investment strategy. Large-capitalization companies may be unable to respond quickly to new competitive challenges and also may not be able to attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. In addition to large-capitalization companies, the Funds may invest in small- and/or mid-capitalization companies, which can be particularly sensitive to changing economic conditions since they do not have the financial resources or the well-established businesses of large-capitalization companies. Foreign markets can be more volatile and less liquid than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market.
The Parnassus Funds are distributed by Parnassus Funds Distributor, LLC. Investing involves risk, and loss of principal is possible.
Before investing, an investor should carefully consider the investment objectives, risks, charges and expenses of a fund and should carefully read the prospectus or summary prospectus, which contain this and other information. The prospectus or summary prospectus can be found on the website, www.parnassus.com, or by calling (800) 999-3505.
ETF investing involves risk, and loss of principal is possible. ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market prices (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
