Core Viewpoint - Global X Conscious Companies ETF (KRMA) targets companies with a stakeholder-oriented approach, focusing on long-term value creation through responsible business practices [1] Investment Strategy - The ETF employs a rules-based screening process to identify companies with durable business practices, emphasizing quality balance sheets and stable cash generation [1] - Return drivers include compounding from resilient franchises and potential downside mitigation during periods that reward governance and operational discipline [1] - Income generation is present in mature industries, although it is not the primary focus of the ETF [1] Market Positioning - KRMA may underperform during speculative risk-on phases that favor highly leveraged or unprofitable companies, but aligns well with mid-cycle or late-cycle environments where cash flow prudence is valued [1] - The ETF serves various portfolio roles, including values-aligned core equity, stability within risk-parity or multi-asset designs, and factor completion for quality and low-volatility characteristics [1] Target Investors - Suitable investors include fiduciaries with mandates emphasizing responsible practices and allocators seeking durable equity exposure that allows for peace of mind [1] Key Risks - A potential risk includes methodology drift or narrow sector tilts from screening, which could lead to unintended concentrations compared to broader benchmarks [1]