There’s an interesting gap in the market here for products which divest of fossil fuels, or market themselves as ethical investment products (avoiding more controversial investments like oil or arms dealers). This might be an interesting angle for Marketsflow to explore if they’re looking at packaging products as ETFs at some point for use in pensions and ISAs, given how easy you’ve said it is to choose different sectors. It’d be really nice to see marketsflow creating some products for different sectors of the global market, which I think has been discussed before.
Legal & General does this with their New World Funds where they actively exclude stocks that don’t meet ESG criteria - like Exxon. One of the very few that are doing it.
There is definitely a case for ESG investing, but it misses a feedback loop for it to be worthwhile. When people invest in such a fund, they wish to understand the good they have done - how much CO2 have they prevented by investing, to how many cars does that equate, where and how did the funds invest (e.g. offshore wind farm off the coast of Scotland), etc. At the moment people invest in ESG and in reality they are none the wiser.
Yes interesting idea, though I think if given a choice between a fund with ethical investments (or eco friendly investments) and another without, many would opt for the ethical one if performance was similar.
Would be really interesting to see a fund which reported on portfolio companies and their successes each year (not just profits but communities helped, infrastructure built etc) - something like Watsi for investments. I do think there’s some value in this sort of themed fund even without that though.
Glad to see further investor support for this @kenny, I made some comparable points in this thread here too: Ethical, Green, Sustainable, and Islamic portfolios
In short, I think the markets for Ethical, Sustainable, Green and Islamic investing need to be seized as opportunities for MarketsFlow - otherwise, we’ll really be missing out.