Socially responsible investments that incorporate environmental, social and governance principles are more than just a gimmicky theme to help conscientious investors feel good about their investment decisions.
In the upcoming webcast, Sustainable Strategies to Add to Portfolios in 2020, Sean Edkins, Head of ETF Sales and Strategic Partnerships, DWS; Gerold Koch, Product Development ESG and Index Investing, DWS; and Robert G. Smith, President and Chief Investment Officer, Principal, Sage Advisory, will look to the diversification benefits of socially responsible investments and how financial advisors can enhance a core portfolio position through ESG strategies.
The Xtrackers MSCI USA ESG Leaders Equity ETF (NYSE Arca: USSG) has been a popular play for investors seeking exposure to socially responsible investments. USSG was developed in collaboration with Ilmarinen, Finland’s largest pension insurance company. The underlying MSCI USA ESG Leaders Index provides exposure to large- and medium-cap U.S. companies with high environmental, social and governance (ESG) performance relative to their sector peers.
Other options include the Xtrackers MSCI EAFE ESG Leaders Equity ETF (NYSEArca: EASG), Xtrackers MSCI Emerging Markets ESG Leaders Equity ETF (NYSEArca: EMSG) and Xtrackers MSCI ACWI ex USA ESG Leaders Equity ETF (NYSEArca: ACSG). The ETFs try to provide exposure to companies with high ESG-related performance relative to their sector peers. The underlying index is based on MSCI ESG Ratings, MSCI ESG Controversies and MSCI Business Involvement Screen Research to determine index components.
Additionally, the more recently launched Xtrackers S&P 500 ESG ETF (SNPE) is among the first ETFs to track the S&P 500 ESG Index, the environmental, social and governance derivative of the widely followed S&P 500 Index. SNPE’s underlying index seeks to target 75% of the float market capitalization of each Global Industry Classification Standard Industry Group within the S&P 500 Index, using an ESG score as the defining characteristic.
Financial advisors who are interested in learning more about sustainable investment strategies can register for the Wednesday, February 19 webcast here.