ESG stands for Environmental, Social and Governance. The broader term often applied is socially responsible investing. You can invest and you can allow the planet, your ethics and principles to have a say. Today we’ll take a quick look at the new BMO ESG ETFs.
Socially responsible investing is in the early stages. But studies suggest that ESG investing may be one of the major trends of the 2020’s. For many, the planet and corporate behaviour rank as a top concern, especially for younger investors.
Guess who’s going to have all the money?
Yup, we’re about to experience the greatest transfer of wealth in history. OK boomer, hand it over say the millennials. And when they get those funds it’s likely that their ESG funds will already be set up and ready for that transfer process.
As you can see from the above graphic, millennials overwhelmingly intend to invest with the planet and corporate governance in mind. And it goes beyond millennials, investors of all stripes want to put the planet first.
That’s a good thing. And as an investor you can layer on to those investments in ESG ETFs. You can look for impact investments and green bonds. Those investments (as per the name) will directly fund projects that can change the planet or help your fellow citizens of the planet.
The BMO ESG ETFs.
BMO Global Asset Management has teamed up with MSCI, a leader in the ESG space.
As you may know, companies are now being given a socially-responsible scorecard. Along with returns and the yield and the PE ratio, you’ll now find ESG scores on the leading sites that look at stocks and funds. Here’s the MSCI process …
The new suite of BMO ESG ETFs.
The above funds are now live and available on the BMO ETF page. You’ll see them in the mix by investment category. Here’s the BMO Balanced ESG ETF in that asset allocation portfolio section.
I think that is a great move and offering. Investors can enter one ticker symbol and receive a globally diversified ESG portfolio. As I’ve reported the one ticket funds are game changers.
That is a classic Balanced 60/40 portfolio mix. The ETF does have a North American bias. But that is largely due to the bond exposure. There is International diversification on the ‘stock side’.
Of course from the list of the new BMO ESG ETFs you can build your own portfolio and can determine your own asset allocation. You can shape the risk level and geographic weighting.
I’ll be back with a deeper look at these funds and responsible investing.
The TSX opening January 21.
Our friends at BMO GAM have been invited to open the stock market today. And they’ve asked me to tag along. Of course, if you’re near a TV the Toronto stock market goes live at 9 30 am EST each trading day.
Here was the group shot as seen on BNN.
And here’s my mock opening pic 🙂
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Thanks, have a great day.