Investing sustainably
How to invest sustainably (without sacrificing returns):
The most important sustainable ETF variants:
1. ESG Screened (lightly filtered):
• Excludes controversial weapons, tobacco, coal
• Approx. 1,500 instead of 1,600 companies
• Return: almost identical to the normal MSCI World
• TER: from 0.12%
2. ESG Enhanced/Leaders (more strictly filtered):
• Only the best 50% of each sector by ESG rating
• Approx. 700–800 companies
• Return: very similar, slightly less diversified
• TER: from 0.18%
3. SRI (Socially Responsible Investing – the strictest):
• Only the best 25% of each sector
• Approx. 400 companies
• Strict exclusion: fossil fuels, nuclear power, gambling, alcohol
• TER: from 0.20%
Return comparison (10 years): MSCI World vs. MSCI World SRI: almost identical (difference 0.5% per year). You give up almost NOTHING.
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