Investing

Inside Stockspot’s Sustainable Portfolios

An overview of Stockspot’s Sustainable Portfolios and a deep dive into which ethical companies are inside.

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)
  • ETFS Physical Gold ETF (GOLD)

Find out why 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.

All the sustainable share ETFs we chose are certified by the Responsible Investment Association Australasia (RIAA) as ‘Certified Ethical Investments’, and have strong ratings from the Ethical Advisers Co-operative.

Up to 90% less carbon emissions

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. 

Source: MSCI. Based on Stockspot’s selected sustainable share ETFs vs broader benchmarks (ASX 300 and MSCI World ex-Australia)

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 the top 10 holdings for each of these ETFs:

FAIR%ETHI%ESGI%
CSL5.0%Apple4.2%Microsoft6.4%
Resmed5.0%Mastercard4.1%Home Depot5.4%
Fisher & Paykel4.9%Visa4.0%Salesforce3.6%
ASX4.3%Home Depot3.7%ASML3.4%
A2 Milk4.0%NVIDIA3.6%Novo Nordisk2.8%
Brambles3.9%Adobe3.1%Gilead Sciences2.4%
Sonic Healthcare3.9%Paypal2.8%Siemens2.1%
XERO3.7%Toyota2.6%Sony2.0%
Telstra3.6%Netflix2.3%Blackrock2.0%
Cochlear3.4%ASML2.1%Allianz1.9%
Source: ETF Providers as of 31 May 2020

Case Studies

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: Gilead Sciences

Gilead Sciences is working on a potential vaccine to stop the COVID-19 pandemic, called Remdesivir. The company is also providing ventilators and personal protective equipment to help care for the ill. 

Will the Stockspot Sustainable Portfolios still be 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.

Sustainable investing is easy with Stockspot. See which sustainable portfolio we recommend to you.

Investment Associate

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.

Grow your wealth effortlessly

Get your free personalised portfolio recommendation

Get started
cloud
Join thousands of Australian already investing with Stockspot