ESG ETF Portfolios for Retirement Savers
These low-cost ETF portfolios are designed to deliver potent asset-class exposures to ESG-conscious investors saving for retirement.
Investing Specialists
Mentioned: Vanguard Short-Term Treasury ETF (VGSH)
, iShares ESG Aware MSCI EM ETF (ESGE)
, iShares ESG Aware MSCI EAFE ETF (ESGD)
, iShares ESG Aware MSCI USA ETF (ESGU)
, iShares ESG 1-5 Year USD Corp Bd ETF (SUSB)
, Xtrackers MSCI EMs ESG Leaders Eq ETF (EMSG)
, Xtrackers MSCI EAFE ESG Leaders Eq ETF (EASG)
, iShares ESG Aware MSCI USA Small-Cap ETF (ESML)
, iShares ESG U.S. Aggregate Bond ETF (EAGG)
, Xtrackers MSCI USA ESG Leaders Eq ETF (USSG)
Interest in sustainable mutual funds--also called ESG (environmental, social, governance) funds--has been soaring. The group gathered $5.5 billion in new assets in 2018 (its best year ever in terms of new inflows), and ESG asset gathering has surpassed that record by a mile so far in 2019. Jon Hale, Morningstar’s director of sustainability research, believes that by year-end, asset inflows into the group are apt to be 3 times higher than they were last year.
Those assets are coming from investors at all life stages, but younger investors appear to have a particular affinity for ESG investing. According to Morgan Stanley research, 86% of millennials (people born between the early 1980s and 2000) say they’re interested in incorporating ESG principles into their investment portfolios.
Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.