Invest and Donate: Two ETFs Supporting Charitable Causes

When you invest in an ETF, one of the first things you look at is the expense ratio. That number covers more than just the portfolio manager’s pay.

It includes administrative costs, operational expenses, custody, legal and compliance, as well as marketing and distribution. All of that gets bundled into a single percentage that is deducted from the fund’s assets over time.

The largest component, though, is usually the management fee. That is the explicit compensation paid to the issuer for running the fund, constructing the portfolio, and handling day-to-day operations.

In most cases, keeping fees low means choosing a passive ETF that tracks a broad index. That has historically been the cheapest way to invest, although more active ETFs, especially in fixed income, have started to come down in price as competition increases.

There is a smaller, more niche category that is worth highlighting. Some ETFs are now structured to donate a portion, or even all, of their revenues to charitable causes.

In an industry that has taken criticism for rent-seeking behavior and increasingly complex, derivative-heavy products tied to single stocks, this is a development that I would like to see more of.

Today, we are looking at two examples. One comes from Simplify Asset Management, and the other from a newer issuer, Aura ETFs. They also happen to support causes that are personally meaningful to me, namely breast cancer research and veteran support.

Simplify Health Care ETF (PINK)

PINK is the first example. This is an actively managed portfolio overseen by Michael Taylor, formerly of Citadel. The fund invests across biotech, medtech, gene therapy, and other healthcare segments.

According to Simplify, this is the first 100% pro bono ETF. All net profits are donated annually to the Susan G. Komen Foundation. As of September 2025, the fund has donated approximately $350,000. PINK currently has just over $229 million in assets under management and charges a 0.51% expense ratio.

In the United States alone, about 1 in 8 women will be diagnosed with breast cancer in their lifetime. The American Cancer Society estimates that more than 300,000 new cases are diagnosed each year, and tens of thousands of deaths still occur annually. Some of my readers will know someone affected by this.

Personally, my girlfriend was diagnosed with stage one non-ductal carcinoma in the summer of 2025. After surgery and radiation, she is now in remission. Many others are not as fortunate. While I do donate to local charities, I view this as one of those areas where more support is always needed.

From an investment standpoint, the ETF has also held up well. Over the roughly 4.5-year period from October 2021 to April 2026, PINK delivered a 7.95% annualized return. Over the same period, the State Street SPDR Health Care Select Sector ETF (XLV) returned 5.05%.

U.S. Defense ETF (DUTY)

DUTY is a very recent launch, debuting on April 8, 2026. The fund is listed on the New York Stock Exchange, with GTS Securities acting as the lead market maker.

It was founded by ETF industry veteran Rob Oliver in partnership with Tidal Financial Group, one of the largest ETF white-label platforms. Oliver previously held roles at JPMorgan and Global X, so there is meaningful experience behind the product.

DUTY charges a 0.45% expense ratio and tracks the Solactive U.S. Defense Index. This benchmark applies natural language processing to analyze company disclosures, financial reports, and other public data. To ensure relevance, only companies generating at least 50% of their revenue from defense-related categories are eligible, and they must meet minimum size and liquidity thresholds.

The portfolio includes many of the prime defense contractors such as L3Harris, Lockheed Martin, Northrop Grumman, and General Dynamics. But it also extends beyond traditional industrial classifications to include companies like Palantir Technologies and Palo Alto Networks, adding an intelligence and cybersecurity dimension.

The charitable component is a core part of the strategy. DUTY has committed to donating 10% of its total management fee revenue to organizations that support military veterans. There is also a minimum commitment of at least $150,000 during the fund’s first year of operation. Considering the fund currently sits at about $0.47 million in assets under management, that is a meaningful and ambitious pledge.

This is a cause that resonates with me. I am not a U.S. veteran, but I did serve in the Canadian Armed Forces as a reservist, and many people in my network are U.S. veterans. The challenges they face are real. In the U.S., veteran suicide rates remain elevated, with thousands of deaths each year. Homelessness is another persistent issue, with tens of thousands of veterans lacking stable housing.

There are many ways to support the veteran community, but it is encouraging to see parts of the ETF industry stepping up and contributing in a tangible way.