Dhe social and ecological investments are becoming more and more popular with private investors, especially passive investments. Last year alone, at 87 billion dollars, more than twice as much money flowed into sustainable listed index funds, ETFs (Exchange Traded Funds) for short, as in the previous year. In addition to the return, the focus is also on environmental, social and the principles of good corporate governance, which are abbreviated by the letters ESG in the financial sector. There is now a wide range of “green” ETFs on the market. So how do you find the right one?
1. What is important to me?
Investors should first clarify which sustainability issues are particularly important to them. Is it more about fair working conditions, or is it mainly about the CO2-emission? How difficult this can be is shown not only by the currently very heated debate about the sustainability taxonomy, i.e. a kind of rule book by the EU Commission that classifies which investments are to be classified as sustainable and which are not. There are ETFs that focus on biodiversity, others have a particular focus on renewable energies, and others again on diversity in companies.
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