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NetPicks’ Top 4 “Green” ETF Selections For Socially Responsible Investment

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NetPicks is a trading company that was founded by Mark Soberman in 1996 with the primary goal of providing a high level of trading education to regular traders. The company has its headquarters in Irving, Texas and boasts of qualified staff and passion for providing the best trading experience for their clients. The services rendered from NetPicks range from forex, stocks, ETFs, Futures, and Options. There are online trading tips and tutorials available that you can carefully follow if you are interested in any of their services. Besides, there are also videos that one can watch from the company’s Youtube channel.

NetPicks intends to educate people to trade smarter and not longer so that’s why their trading systems usually have three objectives that one can choose from. These are a full-time career, part-time income and done in minutes. They have simplified the whole process in a manner that you just select your goal and let the system work the rest for you. The company sets various themes of development and emphasis is laid on sustainable development. There’s need to reduce the rate of environmental degradation while we require advancement in technology and the company strikes a balance between these.

The current state of our planet requires people who invest wisely while maintaining the concept of sustainable development. There are many activities ongoing on our planet, but in 2006 when “An Inconvenient Truth” by Al Gore hit our screens, all eyebrows were raised. Folks realized that there’s more that we can do on this planet other than politics, but was that short-lived feeling? What we require simply a wise investment, yes, that which is socially responsible. NetPicks has recently put more efforts in educating traders to invest in a socially responsible manner.

Have you ever tried investing your money in ETFs?

ETFs are Exchange Traded Funds which resemble mutual bonds, but the process of trading them is different since ETFs are passively managed. ETFs have taken roots in most parts of the world, and the most recommended class is socially responsible. It’s imperative to note that unlike stocks and ETFs which are traded in a similar way, mutual bonds are actively managed.There are various strategies of investing with the objective of sustainable development, and according to USSIF, the following four groups are vital for maximizing your social value and financial returns. The understanding of these four groups will guide one on the best investment decision to utilize.

Positive screening- Involves selecting firms, organizations, and projects based on unique criteria set up

Negative screening- Based on other factors such as social impacts, some investments are exempted from being considered as viable.

ESG Integration- The process of financial analysis of an investment includes ESG factor which plays a crucial role in one’s financial returns.

Themed Investing- The criteria of selection considers the theme of the project; these majorly include sustainable development themes such as alternative energy and others which are subjected to other factors in order to decide on the best investment program.

According to NetPicks, the ETFs that focus on environmental and gender issues were considered to be among the most socially responsible investments ETFs one can give a trial. The following were selected as the top four “Green” ETF Etho Climate Leadership U.S. ETF (ETHO)- This majorly focus on carbon footprint, and priority is given to companies with the least carbon impact on the environment. Generally, it tries to eliminate greenhouse gases which would cause global warming and other environmental effects. It’s the first broad based and socially responsible ETF that doesn’t have exposure to the energy sector.

SPDR SSGA Gender Diversity Index ETF (SHE)- This investment plan majorly seeks for companies with greater gender diversity ratio at senior positions in the US. Therefore, as one comes up with a project, consideration is given that no gender should be sidelined in leadership positions. Investors are aware of how the impact of investing in gender equality and its outcomes in the long-run operation.

iShares MSCI KLD 400 Social ETF (DSI)- This ETF seeks for US companies that are outstanding in social and environmental portfolio characteristics. Since the main aim is to invest in a socially responsible manner, one is likely to maximize returns by investing in such an ETF.

iShares MSCI ACWI Low Carbon Target (CRBN)- As the name suggests, it aims at tracking investment results on mid-capitalization developed and emerging markets with low carbon exposure in comparison to the broad market. Having realized the impact of too much carbon on the planet, this ETF tries to eliminate its accumulation hence such an investment leads to sustainable development. Besides, it encourages a socially responsible way of investing.

Choosing the right ETF

NetPicks outlined four choices that one can consider but which one should you go for? If you are confused, then you’re getting the answer to your puzzle here.

The decision is pegged on many factors, and you should consider all of them. It’s important to consider the risks and expenses involved in all the above. The area of investment should also be factored in before making the final decision.

Why should go for the socially responsible investment?

The main aim of living on this planet is not the quantity of life but the quality. We should consider the next generations and give them a better environment to explore. As we advance in technology, we should invest our resources on technological trends that will have least environmental impacts. NetPicks have more materials that will guide one who is willing to invest in any of these ETFs.

Conclusion

The ball is in your court, and you have learned the steps, your action will determine the destiny of this planet and the next generations. You should be aware that brokerage fees increase your expense for any of these plans and you should avoid them. However, if the situation forces, it can be the last resort. There are other ETFs but based on gender, environmental and social considerations, the NetPicks recommend the above four.An opportunity is opened for both regular and new investors, and in case you have some questions you could send an email to NetPicks. Why wait when there’s an opportunity to invest socially?

Twitter: @netpicks

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