The investment group that convinced ExxonMobil shareholders to give it control of three board seats has launched an exchange-traded fund (ETF) as it looks to prod more companies into enhancing their sustainability efforts.

The San Francisco-based company debuted the Engine No. 1 Transform 500 ETF (ticker: VOTE) with an initial commitment of $100 million. 

ETFs are baskets of securities that trade like stocks and seek to track a given index, commodity or sector. 

Engine No. 1’s ETF  is designed to invest in a market-cap weighted index of the 500 largest U.S. stocks and seek to track the Morningstar U.S. Large Cap Select Index, the principals said.

After its formation last year, the firm encouraged ExxonMobil to adopt more aggressive decarbonization goals, in line with...