What are the ETFs used in the Stockspot Sustainable Portfolios?
Like all investing decisions, it’s important to know what you are investing in. The Stockspot Sustainable Portfolios include the following Exchange Traded Funds (ETFs):
- BetaShares Australian Sustainability Leaders ETF (FAIR)
- Vaneck Vectors MSCI International Sustainable Equity ETF (ESGI)
- BetaShares Global Sustainability Leaders ETF (ETHI)
- iShares Core Composite Bond ETF (IAF)
- Global X Physical Gold ETF (GOLD)
Find out why, when it comes to investing, Stockspot only recommends ETFs.
We researched the universe of sustainable investment products to ensure that the Stockspot Sustainable Portfolios included the most suitable investment options from a risk, return, sustainability and cost perspective.
All the sustainable share ETFs we chose are certified by the Responsible Investment Association Australasia (RIAA) as ‘Certified Ethical Investments’, and have strong ratings from the Ethical Advisers Co-operative.
Up to 90% less carbon emissions
The companies in the Stockspot Sustainable Portfolios generate 80-90% fewer carbon emissions compared to a typical share portfolio. Additionally, the sustainable share ETFs chosen have a 0% exposure to fossil fuel companies.
The Sustainable Portfolios have strict screening criteria to ensure your money is invested with companies that are demonstrating good sustainable practices. We use negative screening, meaning we exclude companies that have unsustainable practices such as fossil fuel production, gas pipelines, gambling, adult entertainment, weapons, alcohol, tobacco, animal testing, detention centres, nuclear energy, junk food, and human rights controversies.
Which individual companies will I own in the Stockspot Sustainable Portfolios?
You can find a comprehensive list of all companies that each underlying ETF holds via websites of each issuer. Just navigate to the ‘portfolio holdings’ section on each of these pages:
- BetaShares Australian Sustainability Leaders ETF (FAIR)
- Vaneck Vectors MSCI International Sustainable Equity ETF (ESGI)
- BetaShares Global Sustainability Leaders ETF (ETHI)
Below are the top 10 holdings for each of these ETFs:
| FAIR | % | ETHI | % | ESGI | % |
| Resmed | 4.7% | NVIDIA | 4.7% | Home Depot | 1.9% |
| Telstra | 4.4% | Apple | 4.1% | Novo Nordisk | 3.9% |
| Goodman Group | 4.1% | Visa | 3.8% | Amgen | 3.8% |
| Cochlear | 4.0% | Paypal | 3.3% | Blackrock | 3.6% |
| XERO | 3.9% | Home Depot | 3.3% | Sony | 2.3% |
| Sonic Healthcare | 3.9% | Mastercard | 3.0% | Allianz | 2.7% |
| Brambles | 3.7% | Adobe | 2.6% | Gilead Sciences | 2.3% |
| Suncorp | 3.6% | ASML | 2.3% | Automatic Data Processing Inc | 2.3% |
| CSL | 3.3% | Toyota | 2.3% | Schneider Electric | 2.3% |
| Fisher & Paykel | 3.1% | Cisco | 2.1% | Marsh & McLennan | 1.9% |
Case Studies
Below are just two of the companies that may be a part of your Stockspot Sustainable Portfolio:
Case study: Resmed
Resmed is a leading provider of sleep machines and masks that help treat a range of sleep-disordered breathing and respiratory conditions. The company is expanding to out-of-hospital software cloud-connected medical devices, and empowers people to live healthier lives by overcoming sleep apnea and other chronic conditions.
Case study: Home Depot
Home Depot is the largest home improvement retailer in the world and has pledged to reduce its C02 emissions, transitioning to recyclable and biodegradable packaging, and prioritising ethnic and gender diversity in their staff and board personnel.
Are Stockspot Sustainable Portfolios diversified?
Yes, diversification remains an integral part of every Stockspot portfolio, whether you opt for a Sustainable Portfolio or not.
Each Sustainable Portfolio will still include the three key asset classes that are required for broad diversification: shares, bonds and gold. The included shares are chosen to earn higher returns over long periods of time, while high-grade government and corporate bonds provide steady income and increase the defensiveness of your portfolio.
Gold is included as an important diversifier that helps to mitigate market risk and cushion sharemarket falls. In line with the ethical direction of the Sustainable Portfolios, gold has a lower carbon emission intensity than other metals, and is used as a catalyst to help convert carbon dioxide into useful fuels via solar panels or wind turbines. The international authority controlling the global gold bullion market (which Stockspot’s chosen gold ETF tracks) has also enhanced their responsible sourcing program to ensure refiners are engaging with ESG issues, implementing sustainable policies, and facilitating responsible supply chains for all mining to alleviate any area of human rights abuse.
You might Also like…
What is ethical investing?Ethical investing aims to achieve long term wealth creation by investing in companies that demonstrate positive environmental and social impact.
Ethical investing without sacrificing returnsEthical and sustainable investing decisions can lead to good financial performance over the long term without having to compromise returns.
How Stockspot built the Sustainable Portfolios?The screening process to find ethical and socially responsible investments to make up a diversified portfolio.
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Marc Jocum
Investment ManagerMarc has previously worked for Morgan Stanley, AMP and KPMG. He holds a Bachelor of Business (Finance/Accounting) from the University of Technology Sydney (UTS), and has completed his Chartered Financial Analyst (CFA) Level 1.
