New Guide To Accessible Ethical Investing
5 December 2017 at 3:21 pm
Responsible investments have quadrupled in Australia in the last three years and a new guide is providing an overview of all the global ethical exchange-traded funds listed on the world’s major stock exchanges.
Founder and CEO of Sydney-based online ethical investment service Balance Impact, Emily Martin, said one of the fastest growing trends in investing was the demand for exchange-traded funds (ETFs) and responsible investments.
“In the first six months of this year $265 billion USD [A$347 billion] was invested in ETFs, almost the exact same amount as flowed out of traditional funds,” Martin told Pro Bono News.
“Although exchange-traded funds are easily accessible due to their listing on the stock exchange, investors have had more difficulty finding ethical ETFs.
“A recent report by the RIAA found that a key barrier to responsible investment was access to relevant product information.”
Martin said the new guide aimed to fill the information gap, by providing an overview of all the global ethical exchange-traded funds listed on the world’s major stock exchanges.
“While researching the market for the guide, we were delighted to see such a wide variety of ethical ETFs available to everyday investors. We have also seen a 33 per cent increase in the number of ETFs since our review last year, which shows the sector is maturing,” Martin said.
“Not only has the number of ETFs available increased, but so have the range of impact areas they cover.
“Today you could buy an ETF and invest in low carbon and fossil-fuel free companies, renewable energy, companies that support LGBT equality, organic food, gender diversity and the United Nations Sustainable Development Goals.”
Martin said there was a perceived barrier to investing ethically.
“We want to show that it is easier than you think to invest in the good things that we care about,” she said.
“We have grouped Europe and UK together as an exchange because most products listed in the UK are also listed on a number of European exchanges.
“It is possible to purchase ETFs listed on a foreign exchange and for example an Australian investor could purchase an ETF listed on the New York Stock Exchange.”
Martin said the list was intended to be comprehensive.
“However with the fast-moving product market we may not have covered the entire universe of ethical ETFs. We intend to update this guide annually.”
You can download Balance Impact’s 2017 Guide to Global Ethical Exchange Traded Funds here.