Labour-sponsored funds are certainly an example of democratization of investment, and so, democratization of the economy. But, as this article by Tessa Hebb and David Mackenzie remind us, there are conditions to respect.
In my mind, to really be contributing to a vision of economic democracy, a labour-sponsored fund must :
* be controlled by unions and labour (on not simply "sponsored") ;
* be guided by the principles of ethical and socially responsible investing ;
* foster democratization in the workplaces it invests in.