ESG abbreviation for Environment (environmental), Social (Social) and Governance (good corporate governance) – has long since arrived on the Radar of professional investors. The Boom time of the ESG is so great that Blackrock CEO Larry Fink predicts the “biggest recapitalization of the story”.
the create Sustainable money with ETFs
ETFs-can very easily be the new Megatrend in. Currently, 131 of the ESG are on the German stock exchange ETFs listed. Almost half of them have only been in the last two years, hung up. Here, however, only ETFs are taken into account, which are already five years and no longer on the market. The Track Record of these products, so their history of Success, can be seen. Since March of last year, investors have earned with the UBS ETF MSCI World Socially Responsible 17.8 percent. An Investment in the MSCI World would have brought in the same period “only” 13.5 percent. FOCUS-MONEY, Recently was able to create a sustainable MSCI SRI Index from the comparison index MSCI World is becoming stronger. This shows that, in the Meantime, investors with green Investments, your money not only with a clear Conscience, but also with a higher rate of return.
The ETFs in the ESG strategy have been obtained from the Rating Agency Scope all the best notes. Who would like to diversify the thematic and regional wide, invested in the UBS ETF MSCI World Socially Responsible. This covers a broad spectrum of global companies that have a high Rating in the areas of environmental protection, social responsibility and corporate governance. The underlying MSCI World Socially Responsible Index has left the classic MSCI World 5 – year perspective, more than 15 percentage points behind. The second priority in the strategy of LYXOR ETF World Water, which invests in global companies in the water supply and treatment forms. With this ETF, investors were able to earn, within five years of 13 percent per year, mind you! Order your Ticket now – for 29 instead of 49 euros!!!
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Investing in green ETFs
The other two ETFs are recommended to be incorporated in order to complement individual regional priorities. The UBS MSCI USA Socially Responsible only considers American values. Emerging risks are to be excluded. The iShares MSCI Europe only invests in European companies with a Top ESG Rating. According to a survey by Amundi, the European ESG is expected to catch up-sector in the coming years.
- UBS ETF MSCI World Socially Responsible
- the LYXOR ETF World Water
- UBS ETF MSCI USA Socially Responsible
- the iShares MSCI Europe SRI UCITS ETF
more ESG-compliant investment opportunities
Although the first sustainable ETF came already in 2006, at the market, the growth dynamics in the last two years. In this period alone, more than half of the currently available funds were launched. The largest offer comes from the providers, Blackrock and UBS. The Anglo-Saxons bring it to almost 45 per cent of the assets of a passive sustainability Fund. Best of all, The average cost of newly issued funds have been reduced, according to the analysis in-house, Scope Analysis from 2007 to today, more than 60 percent – from 0.64 to 0.24 percent per year. In a recent analysis of the Rating Agency (from 15. January 2020) to obtain eleven a sustainable Fund with a Top rating of A or B (see below).
Eleven installations with a Top-rating
- UBS ETF – MSCI EMU Socially Responsible
- the iShares Global Water
- the iShares MSCI Europe SRI
- the Lyxor World Water
- UBS ETF MSCI World Socially Responsible
- UBS ETF MSCI Pacific Responsible
- UBS (Irl) ETF plc – MSCI UK IMI Socially Responsible
- Xtrackers II ESG EUR Corporate Bond
- Vanguard SRI Global Stock
- UBS ETF – MSCI USA Socially Responsible
- the iShares Dow Jones Eurozone Sustainability Screened
funds: Good return – good for Some
Fans of investment funds, the note of environmental and social criteria, the choice is yours: According to the analysis in-house, Scope Analysis, some 1,000 products currently on the market. More than half of equity funds, a fifth bond products and a small part of the mixed Fund. In principle, it can be said that stocks and funds with a focus on sustainability must not perform worse than comparable conventional systems. Example: As a benchmark for the index provider MSCI, the MSCI World Socially Responsible, the delivery in the past few years, better than the MSCI World. The Ökoversion managed a yield of one to three percent per year. The Fund’s results reflect that. On average, achieved global berthing equity funds with a focus on sustainability, according to the Scope, around 15 percent of income to 3.5 percentage points more than conventional equity funds.
- LGT Sustainable Equity Fund Global
- Mirova Global Sustainable Equity Fund
- BMO Responsible Global Equity
- Nordea 1 – Global Climate and the Environment
- Pictet Global Environment Opportunities
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