There are a number of different ethical index funds that UK investors can invest in. Some focus on environmental and social issues, while others focus on corporate governance. All of these funds may be beneficial to investors seeking to make money while at the same time being responsible. However, Imeetzu these types of investments typically have higher management fees than their mainstream counterparts.
In order to select a suitable ethical fund, look for one with a proven track record. An example of a sustainable ETF would be the iShares ESG MSCI EAFE ETF, Koinsbook which invests in clean energy technology and social responsibility projects in emerging markets. However, many emerging economies shut down last year due to the coronavirus pandemic, and this hurt the fund’s performance. Another ethical index fund is the Fossil Fuel Reserves Free ETF, Thedocweb which mirrors the S&P 500 but excludes fossil fuel companies.
While there is no unified ethical fund criteria, investment firms have come up with their own criteria. For example, the Telegraph Money fund, which invests in British companies, screens out stocks involved in certain industries. These ethical index funds may not be appropriate for everyone, Mynewsport but for those who are interested in ethical investing, these funds may be well worth a try.
Ethical index funds can be integrated into a pension portfolio or an individual savings account. Individual savings accounts are a good option for tax-efficient investments. While UK investors have a particular interest in environmentally-friendly index funds, Getinstagram these funds can benefit investors of other countries as well.