Investing in sustainable tracker funds

[KM01]

Years ago I grasped the concept of passive investing and opened an ISA with M&G, invested in their Index Tracker Fund which tracks the FTSE All Share index. In the past few months, due to all the climate change publicity, I’ve become increasing aware that there are more ethical / sustainable indexes and I’d like to switch my ISA to one of these. I’ve come across references to FTSE4Good Index, Domini 400 Social Index and KLD 400 Social Index but haven’t found any ISA providers who offer them as options. M&G doesn’t seem to offer any index tracker options other than FTSE All Share.

I’d also like to open Lifetime ISAs for my (almost adult) children, similarly invested in an ethical index. I know LISA offers are limited at the moment so perhaps this just isn’t possible (unless I get into the world of picking shares which I don’t feel competent, or have the time, to do).

Any suggestions as to ISA providers which offer this, or other ethical investment routes?

Many thanks

KM01

[Alaric]

Any suggestions as to ISA providers which offer this, or other ethical investment routes?

It's not so much ISA providers that would present the problem, as the mainstream platforms would offer every investment that it's legal for them to make available to retail clients. Rather it's a question of whether any fund management house has launched a tracker fund with the naughty bits removed. Ethical funds exist but usually based on active management ie a person going through the list of potential holdings, crossing some of them off before selection of hoped for performers.

[KM01]

Thanks Alaric,

It sounds like perhaps there just isn’t a passive route to investing in a sustainable index? Having done a bit more browsing this morning, I see that Nestlé is prominent in the FTSE4Good index, so not so good after all.

KM01

[EthicsGradient]

For tracking indexes, these days I'd suggest looking at ETFs - which most ISA providers should include. This article from the start of the year might help:

https://www.moneyobserver.com/ethical-e ... morals-are

[vagrantbrain]

ishares offer a range of "sustainable" investments - depending on your definition of sustainable they might be suitable:

https://www.ishares.com/uk/individual/e ... &fst=50586

[KM01]

Many thanks for both of these suggestions. Currently looking into them.

KM01

[z4434]

this is the question i was working on for the past 2 weeks.
Please see my shortlist - all are available on ISA and all have either 4 or 5 Morningstar Globus sustainability ratings.
Hope this helps. If you find something else to add here please let me know. Thanks. Zaour

ps - note last 3 are active (not passive funds)


UBS ETF MSCI World SRI USD A dis GBP
iShares Dow Jones Global Sustainability Screened UCITS ETF USD (Acc) (GBP) IGSG
iShares MSCI EMU ESG Screened UCITS ETF EUR (Acc) (GBP) SAUM
Janus Henderson Instl Gl Rpnsb Mgd I Acc
BMO Responsible Global Equity
Stewart Investors Worldwide Sustainability Fund Class B (Accumulation) GBP

their ISIN numbers :
LU0629459743"
IE00B57X3V84
IE00BFNM3B99
GB00B4LMJ388
GB0033145045
GB00B7W30613