The environment is constantly at risk of destruction, and the people’s well-being is all but ignored. Who do we blame for this gradual yet massive destruction? Consider the projects and companies people are investing in. It is these that are most responsible.
Fortunately, most people now understand this mainly thanks to “An Inconvenient Truth” which was first showed in May 2006. While the Al Gore film has since become a political hot button, it is hard to ignore the fact that it portrays the earth’s state. NetPicks’ Mark Soberman feels that how people allocate their investments can help make the world a better place and diminish personal risk.
NetPicks’ president, Mr. Soberman argues that you can accomplish this through the socially responsible management of your portfolio in a way that makes it more diversified. According to Soberman, there exists a large variety of investment tools through which one can ensure one’s investments are socially responsible. One, of such methods advocated for by NetPicks, is ETFs.
Just who are NetPicks?
NetPicks is an online trading strategy company founded in 1996. The company, founded and presided over by Mark Soberman, focuses on assisting traders to succeed in the markets. NetPicks has its headquarters in Irving, Texas. The team consists of actual trading experts boasting of more than 25 years’ experience in the trade. The company offers training in such areas as signals, Forex, systems, stocks, futures, options, and ETFs.
All the members of the coaching team have been taking and continue to take trades. They, therefore, have hands-on experience on the ups and downs of trading and this is what makes NetPicks the best online trading strategy company. The company’s trading systems are founded on specific objectives. NetPicks lets the client choose their objective and then the company’s systems work to accomplish them. These objective-guided systems are;
• Part-time income
• Full-time career
• Done in minutes
A quick look at ETFs
The acronym ETFs stands for Exchange Traded Funds. The term refers to investments whose structure is almost similar to that of mutual bonds. However, mutual bonds and ETFs differ in terms of the process of trading them.
The trading process of ETFs is relatively similar to that of trading stocks. ETFs are structured to track an index whereas mutual bonds are not. This means that ETFs are, to a great extent, managed in a passive way whereas mutual bonds are usually managed actively.
ETFs as a method of socially responsible investment
The emergence and gradual increased popularity of ETFs has led to an enlargement of the trading market. The market has become broad enough to accommodate different classes of assets and methods of investing. Of course, all these have their own advantages and disadvantages. Nonetheless, NetPicks ranks socially responsible ETFs as the best investment method.
More and more people are interested in making investments that are sustainable. This is because people have become increasingly aware of the role they play in ensuring the continuity of the society and the environment. People’s investment choices are no longer solely driven by maximized financial returns. A lot of people want to make a difference too.
There are numerous investment strategies that you can employ to achieve maximum financial returns while also making the world a much better place. This is called socially responsible investment. USSIF classifies these strategies as follows:
Themed Investing.
This focuses on the sustainability of the projects wherein investors put their money in companies and projects that have a better chance of benefiting from the move towards sustainable business and lifestyles. This strategy selects projects or companies for investment as per their themes. The themes considered are such as green technology, social justice, and green energy. The idea is to stay away from companies that deal in addictive or harmful substances.
Negative screening.
This strategy selects companies and projects based on possible negative impact. Companies or projects that are likely to create controversy or have a negative impact on the society are excluded from the investment. This strategy is sometimes referred to as avoidance screening.
Positive screening.
This strategy selects companies or projects according to the criteria they meet. The strategy aims to direct investment where companies are committed to acceptable business practices and positive products and services. Examples include investing in companies that deal in basic needs such as food, clothing, and shelter. It also includes investments in such areas as technology. Positive screening is effective because it helps investors to promote their philanthropic interests and also encourages good responsibility in doing business.
ESG Integration.
This strategy incorporates ESG factors during financial analysis. The term ESG stands for Environmental, Social, and Governance. This means identification of companies that are top in their respective industries, focus on the future, have significant corporate social responsibility, have good management and have an effective system of anticipating and eliminating risks.
NetPicks’ Top 4 ETF Selections
1. iShares MSCI KLD 400 Social ETF (DSI): choose only companies and projects that actively seek to achieve positive change in the environment and society as a whole.
2. Etho Climate Leadership U.S. ETF (ETHO): select companies and projects that have minimal to no carbon impact in the industries within which they operate. This means that the companies are compared to other similar companies.
3. iShares MSCI ACWI Low Carbon Target (CRBN): this selection focuses on tracking investment results. These results are derived from an index comprising rising and established market equities whose carbon exposure ranks below that of larger markets.
4. SPDR SSGA Gender Diversity Index ETF (SHE): choose those companies whose primary focus is promoting the diversity of the top positions in the company and encouraging gender equality.
Socially responsible ETFs are clearly essential for every trader’s portfolio. You may be an established investor, or perhaps you are only just starting your investment journey.
Whichever the case, ETFs guarantee you a chance to create positive change both environmentally and socially through a more diversified portfolio. If you are still undecided on the best trading method to use, NetPicks advice is that ETFs trading is the sure way to go.
Dil Bole Oberoi
