Gabelli Love Our Planet & People ETF (LOPP)

The Gabelli Love Our Planet & People ETF (ticker LOPP) is an exchange-traded fund that tracks a portfolio of U.S. large-cap companies selected through both fundamental analysis and environmental, social, and governance criteria. It aims to combine equity exposure with companies that meet sustainability screens, offering dividend-oriented investors a way to align capital with ESG practices.

What companies does it actually hold?

The fund’s portfolio consists of approximately 50 to 80 large-cap U.S. equities. Unlike purely index-based ETFs that mechanically hold every stock in a predetermined index, LOPP applies active screening developed by Gabelli Asset Management. The selection process focuses on established dividend-paying companies across sectors — consumer staples, healthcare, financials, energy, and utilities typically feature prominently because those sectors have mature, stable cash flows and established dividend histories. The fund excludes companies based on involvement in fossil fuels (direct coal production, thermal coal power), tobacco, gambling, and weapons. It also applies positive screening for companies demonstrating strong environmental stewardship, labour practices, and board diversity.

How much does it cost to own it, and what returns has it delivered?

LOPP carries an expense ratio in the mid-range for actively managed ETFs, reflecting the research required to apply ESG screens alongside fundamental analysis. The fund distributes dividends quarterly, typically at a yield consistent with large-cap dividend payers, which means it generates regular cash payments to shareholders. Historical returns depend on the dividend component and the capital appreciation (or depreciation) of the underlying holdings — it tracks not an index but a hand-selected portfolio, so its performance versus broad-market indices varies by year depending on sector strength and the quality of the fund’s stock selection. As with all equity funds, past returns are not a guarantee of future results.

What are the real risks specific to this fund?

A dividend-focused ESG fund faces several distinct risks. First, the exclusion of energy and fossil fuels, while aligned with the fund’s stated values, reduces diversification and creates sector concentration. Energy and utilities are historically stable, low-volatility holdings; removing them entirely exposes the portfolio more to other sectors. Second, ESG criteria are not standardized across the industry, so the fund’s definition of “sustainable” practice may not match a prospective investor’s own values — companies the fund screens in might fail others’ ESG tests, and vice versa. Third, the emphasis on dividends means the fund may underperform in periods when growth stocks outpace dividend payers, as occurred during several technology booms. Fourth, small missteps in the stock-selection process — picking a company whose ESG profile deteriorates or whose dividend is later cut — are concentrated losses in a 50-to-80 stock portfolio, whereas a passive index fund spreads that risk across thousands of holdings.

Who is this fund designed for?

LOPP appeals to investors who want equity exposure to U.S. large-cap companies, seek regular dividend income, and wish to exclude sectors or practices they view as harmful. It is not a pure value play nor a growth fund; it sits between them, aiming for both steady income and companies with sound management. It is more suitable for investors with moderate time horizons who tolerate equity-market swings but prefer capital that is deployed according to stated ESG principles rather than agnostic, mechanical index replication.

How would you research this fund before buying?

Start with the fund’s prospectus and fact sheet, available from Gabelli Asset Management. The prospectus details the complete list of holdings, the exact ESG criteria applied, the fund’s objective, and the risks. Look at the fund’s top ten holdings to see what kinds of companies the screening produces — are they recognizable blue-chips, or smaller-cap dividend payers? Examine the sector breakdown (percentage in healthcare, consumer staples, utilities, and so on) and compare it to a broad-market large-cap index like the S&P 500 to understand how concentrated or different the fund is. Check the trailing yields and recent dividend history to understand the income stream. Review the expense ratio relative to similar ESG or dividend ETFs and consider whether the active management justifies the cost versus a passive ESG-screened index alternative. Lastly, read through the fund’s criteria document: does its definition of ESG align with yours? A fund that allows certain energy companies or applies labour standards differently than your own values will undermine your intention.

The fund trades on the NASDAQ under the ticker LOPP and can be bought or sold during regular market hours just like any stock. Its price fluctuates with the value of the underlying portfolio, and shares can be held in taxable accounts or within tax-sheltered accounts such as individual retirement accounts.