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.
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:
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.
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.
Marc Jocum Investment Manager
Marc 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.
The Stockspot portfolios have also outperformed 99% of similar diversified funds in Australia over the last 5 years. The Stockspot Model Portfolios returned 8.6% to 11.8% after fees over the 12 months to 31 December 2023, while the Stockspot Sustainable Portfolios returned 10.1% to 14.0% after fees.
We invest in Exchange Traded Funds (ETFs) which are listed on the Australian Stock Exchange (ASX). ETFs can give you access to both Australian and overseas shares, bonds and other asset classes without the higher fees of active management.
Is my money safe with Stockspot? Yes. When you invest with Stockspot, your shares are owned by you, and safely registered with the ASX under CHESS sponsorship. All of your investments and cash are held in your own name on your own Holder Identification Number (HIN) rather than pooled with other people.
This is because companies that prioritize ESG criteria are more likely to have a long-term perspective and are less likely to engage in risky or unethical practices that could harm their reputation and financial performance.
Stockspot has also outperformed at least 99% of similar diversified funds over five years as a result of selecting the right low-cost ETFs and the inclusion of gold as a defensive asset. Performance is after-fees as at 31 March 2023. Returns are after ETFs fees and after Stockspot fees based on the Silver tier.
How do your fees compare to the industry average? Stockspot's advisory fee is less than a quarter of the industry average. You can save thousands over the course of your lifetime by paying a fraction of what traditional advisors charge.
A billionaire may use some or all of these services, but for buying stocks, they may use a prime brokerage specifically to borrow securities for short selling (making money from stocks when they go down) or borrowing large amounts of money to buy stocks on margin.
We're the largest online investment advice (robo-advice) service in Australia. We help more than 13,000 clients and have more than $600 million in funds under management. Stockspot uses ETFs (exchange traded funds) as the basis of how we invest funds on behalf of clients.
You can opt out of our services at any time by making a full withdrawal request. The process takes 4-5 business days for the funds to arrive in your linked bank account. There are no brokerage or exit fees payable for full withdrawals from your Stockspot account.
Stockspot's alternatives and competitors. See how Stockspot compares to similar products. Stockspot's top competitors include Unhedged, and QuietGrowth. Unhedged operates as a company focused on investment management, specifically in the financial services sector.
Stockspot is Australia's first and largest online investment advisor (robo-advisor). We build you a smart, personalised portfolio based on your unique situation and goals.
Stockspot Savings include the Betashares AAA ETF. The Stockspot Sustainable Portfolios contain Betashares FAIR and ETHI. Stockspot Themes include the options of Betashares NDQ and ASIA.
However, there are also some cons to ESG investing. First, ESG funds may carry higher-than-average expense ratios. This is because ESG investing requires more research and due diligence, which can be costly. Second, ESG investing can be subjective.
Investors looking to weather a recession can use exchange-traded funds (ETFs) as one way to reduce risk through diversification. ETFs that specialize in consumer staples and non-cyclicals outperformed the broader market during the Great Recession and are likely to persevere in future downturns.
Capital Economics has been named the most accurate forecaster of major global stock indices in Reuters polls. The 2023 LSEG StarMine Award was given for forecasting accuracy across 11 equities benchmarks and reflects the breadth and depth of our global coverage of macro and markets.
1. AltIndex – Overall Most Accurate Stock Predictor with Claimed 72% Win Rate. From our research, AltIndex is the most accurate stock predictor to consider today. Unlike other predictor services, AltIndex doesn't rely on manual research or analysis.
Citadel LLC is one of the largest hedge funds based in the U.S., with approximately $92.46 billion in total assets under management as of Sept. 30, 2023. Citadel has generated roughly $74 billion in total gains since its inception in 1990, making it the most successful hedge fund of all time.
Introduction: My name is Duane Harber, I am a modern, clever, handsome, fair, agreeable, inexpensive, beautiful person who loves writing and wants to share my knowledge and understanding with you.
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