Eco Assets ♻
Sustainable investing means something different to everyone, but broadly, it’s about excluding the morally deplorable from your investment portfolio – and maximizing investments into ethical companies that will still provide good returns. Given a choice, most investors would choose to be ethical and make a profit – but oftentimes in the markets, you can’t have both – but can you? Well, a study by the International Monetary Fund (IMF) has shown that ethical investing can provide returns, proving that rejecting dirty stocks has a negligible impact on your returns.
Over the past few years investing through this ethical lens has become quite popular, in fact, sustainable investments total $35.3 trillion. This data comes on Monday from a report from the Global Sustainable Investment Alliance (or GSIA). According to the GSIA investing sustainably accounts for 36% of total assets under management. So how can you get into investing sustainably? Well, there are many ETFs to invest in. For example, the SHE ETF is an ETF focused on gender equality – holding companies with a high proportion of female executives. Some others include DSI which focuses on social factors and SPYX which is all about going fossil fuel-free. A poll of the Invstr community a couple of years ago revealed that 70% of the community is committed to ESG. Are you still interested in keeping up with ESG in your portfolio? Or has your opinion changed?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.