We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
In this episode of ETF Spotlight, I speak with Amanda Rebello, head of passive sales at DWS Group, about ESG investing. DWS has a 25-year history of responsible investing and offers an excellent suite of ESG ETFs.
ESG funds, which hold companies with positive environmental, social and governance characteristics, are surging in popularity. In 2020, sustainable funds attracted a record $51.1 billion in net flows, more than twice the previous record set in 2019, per Morningstar. What is driving this growth?
ESG is not easy to define, and rating agencies use different definitions for sustainability. As one example, electric-car maker Tesla (TSLA - Free Report) is a top holding in many clean energy ETFs but not included in most ESG ETFs. Warren Buffett’s Berkshire Hathaway (BRK.B - Free Report) also doesn’t get included in many ESG ETFs due to its low scores on corporate governance.
Many sustainable funds are invested in oil-and-gas companies, like Exxon (XOM - Free Report) and Chevron (CVX - Free Report) . It is important for investors to look under the hood of ESG funds and make sure that holdings align with their beliefs.
The Xtrackers S&P 500 ESG ETF (SNPE - Free Report) invests in S&P 500 companied that meet the sustainability criteria and excludes companies involved in tobacco, controversial weapons, and thermal coal. Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report) are its top holdings.
In fact, tech giants get outsized allocations in most ESG ETFs. Did excellent performance of tech stocks and underperformance of energy over the past few years contribute to ESG popularity?We also discuss how Biden Administration's climate agenda will benefit ESG.
Tune into the podcast to learn more about the Xtrackers ESG suite that offers risk and returns quite similar to broad market indexes.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ESG ETFs: Doing Well by Doing Good?
In this episode of ETF Spotlight, I speak with Amanda Rebello, head of passive sales at DWS Group, about ESG investing. DWS has a 25-year history of responsible investing and offers an excellent suite of ESG ETFs.
ESG funds, which hold companies with positive environmental, social and governance characteristics, are surging in popularity. In 2020, sustainable funds attracted a record $51.1 billion in net flows, more than twice the previous record set in 2019, per Morningstar. What is driving this growth?
ESG is not easy to define, and rating agencies use different definitions for sustainability. As one example, electric-car maker Tesla (TSLA - Free Report) is a top holding in many clean energy ETFs but not included in most ESG ETFs. Warren Buffett’s Berkshire Hathaway (BRK.B - Free Report) also doesn’t get included in many ESG ETFs due to its low scores on corporate governance.
Many sustainable funds are invested in oil-and-gas companies, like Exxon (XOM - Free Report) and Chevron (CVX - Free Report) . It is important for investors to look under the hood of ESG funds and make sure that holdings align with their beliefs.
The Xtrackers S&P 500 ESG ETF (SNPE - Free Report) invests in S&P 500 companied that meet the sustainability criteria and excludes companies involved in tobacco, controversial weapons, and thermal coal. Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) and Amazon (AMZN - Free Report) are its top holdings.
In fact, tech giants get outsized allocations in most ESG ETFs. Did excellent performance of tech stocks and underperformance of energy over the past few years contribute to ESG popularity?We also discuss how Biden Administration's climate agenda will benefit ESG.
Tune into the podcast to learn more about the Xtrackers ESG suite that offers risk and returns quite similar to broad market indexes.
Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>