Investment
Stewardship

How we support advisors and investors through proxy voting and shareholder engagement

Download the white paper

Unlock the full white paper to explore how Ethic help advisors and investors harness the power of active ownership to drive meaningful change. Key insights include: 

How Stewardship Works

Learn how proxy voting, engagement, and shareholder proposals can shape corporate behavior and help investors address issues that matter to them.

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The Ethic Approach

Discover how Ethic makes active ownership accessible through advocacy partnerships, tailored proxy voting, and transparent reporting.

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Why It Matters

Understand how stewardship connects investments to client priorities, helps advisors differentiate their offerings, and drives measurable corporate change.

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A complete approach to investment stewardship

At Ethic, we view stewardship as a core part of implementing values-aligned investing. By holding shares in their own name through direct indexed SMAs, clients retain the full right to vote and engage with the companies they own—an opportunity typically unavailable to ETF or mutual fund holders.

Our stewardship model is grounded in three pillars:

Proxy Voting

Aligned with socially responsible investing guidelines.

Shareholder Engagement

Through partnerships with leading advocacy organizations.

Transparent Reporting

To investors can see the direct outcomes of their participation.

Frequently asked questions

What is investment stewardship, and how does it relate to values-aligned investing?
Stewardship—also called active ownership—enables investors to influence the companies they hold through activities such as proxy voting and shareholder engagement. It helps align investments with client priorities on issues like corporate governance, climate risk, workforce practices, and political spending.
What is proxy voting, and why does it matter to investors?
Proxy voting allows shareholders to vote on company matters such as board composition, executive pay, mergers, and shareholder proposals. These votes can influence corporate governance, shape policies, and encourage transparency.
What kinds of issues can be addressed through shareholder proposals?
Proposals can cover environmental practices, human rights, political spending, governance reforms, climate disclosure, and workforce diversity, among other topics.
What are the risks and considerations for investors participating in stewardship activities?
Sponsoring a proposal may make an investor’s name public in a company’s proxy statement or SEC filings. While negative experiences are rare, it is possible. Timelines for sponsorship decisions are often short, and institutions may need policy updates or board approval to participate.
How does Ethic ensure transparency and measurable outcomes in stewardship?
Ethic provides real-time, account-specific vote reporting through its platform, along with updates on engagement outcomes from advocacy partners.
How does Ethic’s stewardship approach differ from competitors and traditional fund managers?
Because clients in Ethic’s direct indexed SMAs hold shares in their own name, they retain the ability to fully participate in active ownership—something typically unavailable to ETF or mutual fund holders. Ethic also provides tools, partnerships, and a streamlined process to make participation accessible and effective.
How can shareholder engagement influence corporate behavior?
Engagement—through dialogue, letters, or filing/endorsing proposals—can prompt companies to improve practices and disclosure. Even non-majority votes can drive change when they demonstrate significant shareholder concern.
How does Ethic partner with advocacy organizations?
Ethic works with groups such as As You Sow, Open MIC, and Rhia Ventures to identify and facilitate opportunities for clients to sponsor or endorse shareholder proposals on issues aligned with their values.
How frequently are proxy votes and shareholder engagements conducted?
Hundreds of proxy votes may occur each year for a given account. Engagement opportunities are most often identified between September and October, with filing deadlines in November and December for the following spring’s annual meetings.
Can stewardship have an impact without a controlling stake in a company?
Yes. Even when investors don’t hold a majority position, coordinated shareholder action can influence decisions—especially when proposals receive strong minority support.

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