How to Pick a Sustainable Investing ETF

Morningstar's Hortense Bioy provides a list of key considerations that investors can refer to when choosing an ESG ETF

Hortense Bioy, CFA 30 July, 2018 | 8:38AM

investing ideas investment basics ESG ethical environmental ETF passive funds

As sustainable investing becomes more mainstream, the menu of exchange-traded funds focused on environmental, social, and governance factors is growing. There are now close to 30 such ETFs listed on the London Stock Exchange, with combined assets of £4.8 billion.

While this expanding choice is great news for investors, it also calls for greater attention. No ESG ETF is created equal, and complexity is on the rise. And it becomes increasingly critical to understand what’s under the hood of these funds. Here we provide a list of key considerations that investors can refer to when choosing an ESG ETF.

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About Author

Hortense Bioy, CFA

Hortense Bioy, CFA  is director of passive funds and sustainability research in Europe for Morningstar

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