For Immediate Release
Chicago, IL – January 23, 2020 – Zacks Market Edge is a podcast hosted weekly by cks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
Warning: Do You Know What’s in Your ESG ETF?
Welcome to Episode #209 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Neena Mishra, Zacks Director of ETF Research, and Zacks expert on ETFs, to discuss some of the niche ESG ETFs.
Recently, there was a Twitter controversy about the US Vegan Climate ETF (VEGN) because its two largest components in the portfolio are Apple ( (NASDAQ:AAPL) ) and Microsoft ( (NASDAQ:MSFT) ).
How does that make any sense in a Vegan Climate ETF?
Shouldn’t the top stocks be vegan-specific companies?
The ETF invests in companies that have zero animal exploitation and do not destroy the environment.
As Neena points out, this ETF is an “exclusionary” ETF. It excludes companies that don’t fit the criteria.
A couple of examples are companies like Amazon ( (NASDAQ:AMZN) ), because Amazon owns Whole Foods which sells meat.
Exclusionary ESG ETFs
Because there aren’t enough companies that are publicly traded in a certain industry, such as veganism or alternative energy, the ETFs go the other way and invest in companies that DO follow the criteria and exclude those that don’t.
This is how you get so many ESG ETFs owning Apple and Microsoft. Microsoft, for example, has pledged to be carbon negative by 2030.
Also, in the ESGs, they have criteria on each component. In many of the ESG ETFs, Berkshire Hathaway (BRK.B) is often excluded because it apparently doesn’t meet good reporting standards, which is the “G”, or “governance” in many of these funds.
What else should you know about what your ETF may be holding?
Tune into this week’s podcast to find out.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook (NASDAQ:FB): https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Berkshire Hathaway Inc. (NYSE:BRKa) (BRK.B): Free Stock Analysis Report
US-VEGN CLIMATE (VEGN): ETF Research Reports
Original post