1nvest

1nvest is listing a new Exchange Traded Fund (ETF) on Thursday 28 July. It’s the 1nvest MSCI World Socially Responsible Investment Index Feeder ETF which is a mouthful but essentially it is about social responsible investing.

This ETF uses the MCSI World index as its starting point (which includes ±1,500 stocks) before first reducing to the MSCI World SRI Select Reduced Fossil Fuel Index and then a step further excluding a range of sectors.

In this case, that means no companies related to; Controversial Weapons, Nuclear Weapons, Tobacco, Civilian Firearms, Conventional Weapons, Alcohol, Gambling, Adult Entertainment, Nuclear Power and Genetically Modified Organisms. Further also means no; Thermal Coal, Oil Sands, Oil & Gas, Power Generation and Thermal Coal/Oil Sands Reserves.

So then what’s left?

Well, a lot and below are the top 10 holdings out of 371 shares in the ETF with all being listed in developed markets (albeit many operating in emerging markets).

1nvest ETFSRI top 10 holdings

The largest sectors are; healthcare, financials, IT and consumer discretionary all at around 15% weighting in this ETF.

ETF details;

• Issuer ~ 1nvest
• JSE code ~ ETFSRI
• Listing ~ 28 July 2022
• Dividends ~ Quarterly
• Estimated TIC ~ 0.4%
• Tax-free ~ Allowed

Our thoughts

I like it. any will moan about the PC nature of responsible investing, but two things. Firstly, it is important and while the responsible/ESG trend is still fairly new with lots of different interpretations (and claims of no consistency)- it is a trend that will only gather momentum over time. Secondly, it does result in a nice spread of sectors with long-term growth potential in a world where dirty energy, war and the like will become less investable. That all said this ETF is early to the trend.

Simon

At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.