To get started with sustainable investing, take a look at the following four investment approaches and see which one may align best with your goals.
The Planner
Minds the market and wants to invest sustainably
The Planner keeps a close eye on the market and aims to strike a balance between market exposure and integrating sustainability insights to achieve a better outcome.
To follow in the Planner’s footsteps and cost-efficiently build a sustainable portfolio for the long term, consider iShares ESG Aware ETFs, which seek similar risk and return to the broad market with more sustainable outcomes. The iShares ESG Aware MSCI USA ETF, for example, is designed to optimize exposure to U.S. companies that have positive ESG characteristics and screen out those involved in controversial weapons, tobacco, thermal coal and oil sands. This is a great investment approach for those beginning their sustainable investing journey.
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iShares ESG Aware MSCI USA ETF
Seeks similar risk and return to relevant broad market indexes with a more sustainable outcome.
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The Go-Getter
Prioritizes investing in companies with higher ESG ratings
ETF To ConsideR:
The Go-Getter is always on the lookout for companies that are leaders on ESG issues that can impact a company’s value, like energy consumption, clean tech innovation or workplace health and safety policies.
These investors are the biggest advocates for corporate social responsibility, so when building their portfolios, they consider investments like the iShares ESG Advanced ETFs, which hold higher-rated ESG companies that may be better positioned to manage ESG risks and opportunities over the long term. The iShares ESG Advanced MSCI USA ETF, for instance, seeks to track an index of companies with favorable ESG ratings while applying extensive screens for companies involved in controversial business activities, like those related to fossil fuels.
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Obtain exposure to large- and mid-cap U.S. stocks with favorable ESG practices.
iShares ESG Advanced MSCI USA ETF
The Specialist
Focused on advancing a specific ESG issue
ETF To ConsideR:
The Specialist is a passionate investor who’s excited about a specific environmental (E), social (S) or governance (G) theme. “E” themes can include climate change and natural resource use, “S” themes can include data privacy and product liability and “G” themes can include board composition and business ethics, for example.
When building their portfolio, the Specialist considers iShares ESG Thematic ETFs, which are designed to access a specific sustainable issue. If investors have conviction in clean energy, for example, the iShares Global Clean Energy ETF can offer them exposure to companies from around the world that produce energy from solar, wind and other renewable sources.
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Seeks to track the investment results of an index composed of global equities that produce and distribute clean energy.
iShares Global Clean Energy ETF
The Changemaker
Eager to help build a better future
ETF To ConsideR:
The Changemaker wants to make an impact—and seeks to make money doing it. This type of investor embraces companies that are generating specific, measurable sustainable outcomes and is equally interested in seeing competitive financial returns.
These types of investors should look into impact ETFs, which provide targeted exposure to global bond or equity markets with a quantifiable ESG impact. The iShares Global Green Bond ETF is an example of an impact ETF that holds global bonds where the proceeds are used to fund environmental projects.
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Access global investment-grade green bonds issued to fund projects with direct climate or environmental benefits.
iShares Global Green Bond ETF
To learn more about how to invest sustainably with ETFs, click here.
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