A sustainable ETF is an exchange-traded fund that only invests in companies focused on sustainable projects. Those companies that are socially responsible are making an intentional effort to contribute positively to sustainable living.
Investing in ETFs is profitable, but it can be better than that when you invest in sustainable EFTs. Besides the high returns of investing in sustainable ETFs, you will also be doing something good for the planet. If you wonder whether you can profit from sustainable ETFs, then the answer is yes. Below is a more detailed explanation.
1. Sustainable Funds Perform Better In The Long Run
Source: online.hbs.edu
Sustainable funds established about ten years ago are doing better today than the traditional ones established around the same time. That is because of the awareness created over time about sustainability and the importance of participating in it.
More companies are now cautious about their contribution to ESG goals and sustainability. Therefore, sustainable ETFs have become more popular over time. The returns have also increased with time, which might have been different from the case 10 years ago when the topic was not so publicized.
2. Sustainable ETFs Have The Same Returns As Traditional Ones
Source: lehnerinvestments.com
In most cases, investing in sustainable or normal ETFs will yield the same returns. When the economy is doing great, you will likely make the same profits whether your ETF is sustainable.
Therefore, making a profit while contributing to positive projects like sustainability is better. That is because it does not cost extra to invest in sustainable ETFs. If you can make a difference and still profit, that is a win-win situation for you and the future world.
3. More High-Performing Companies Are Investing In Sustainability
Source: citywire.ch
Every company has a social responsibility to conduct its operations ethically and sustainably. More people are now aware of the impact of irresponsible operations on the planet and everything living on it. Therefore, people have started buying from companies with sustainable policies compared to those that do not.
Today, companies with green products and other sustainably sourced products are making more sales than the rest. They tend to grow and expand their businesses, making them good investment choices for anyone looking to build an investment portfolio. Investing in sustainable ETFs is a good idea if you want to make profits.
Conclusion
Sustainable ETFs are lucrative and help build a sustainable future. You can therefore make a positive impact in the world and still invest your funds in places where it will multiply. However, you need a good investment company to help you identify legit sustainable ETFs.
Due to the hype and the benefits, most companies will claim to be sustainable, but in reality, they are not. Doing your due diligence before investing is one way to ensure that you are contributing to sustainability.
Start investing in sustainable ETFs today and see your investments grow as you keep the planet habitable for longer. Yes, you can make a profit by investing in sustainable ETFs.
