Blackrock have recently launched a range of multi-asset ETFs similar to Vanguard’s popular Lifestrategy range, but in ETF format with some active tilting using ESG underlying funds (https://portfolio-adviser.com/blackrock-unveils-multi-asset-esg-range/). I wonder if it might be possible to bring the GBP accumulating versions to Freetrade?
I currently have a freetrade GIA that I use for ‘playing around’ but I am mainly a passive investor, I am looking to move my ISA soon and would love to be able to use these as a lazy, ESG alternative to Vanguard. With a dearth of broad ESG bond ETFs on freetrade, this would be a big pull for me as a cheap, SRI ‘set and forget’ option rather than an ESG equity ETF and trying to find the right bond fund. I’d probably move my ISA over shortly after they became available - in the hope of automated regular contributions later.
Thoughts? I am led to believe that @Viktor is easily persuaded by ESG ETFs
As for why is it good, it’s personal preference and obviously comes in many different forms - in passive funds it’s usually just screening out certain businesses either based on individual companies ‘scores’ or removing whole sectors (say arms or oil). In the case of the iShares funds I happen to quite like them as the screen they use broadly meets what I want it to, but others are available.
Edit, to add, with iShares there’s three main types of ESG funds - screened, enhanced and SRI (Exchange-Traded Funds (ETFs) | iShares UK – BlackRock). These multi-asset ETFs I believe use a combination of these different approaches in the underlying funds
indeed! It’s also a way to screen out the additional risk inherent in companies with poor governance etc. Some (including Blackrock Subscribe to read | Financial Times) argue that ESG investments will outperform in the future and that climate change will be a huge market risk to non-ESG companies, but who knows performance-wise. It’s certainly a way to put my money where my mouth is ethics-wise! But as you say, it does depend on your ethical outlook - if you want to be precise you probably need to actively invest, as you may not agree with the screens or scoring imposed in a certain passive fund
Yeah, at the end of the day it always comes down to your own research. What of Shell? Probably a poorer hit on the environmental side, but they are a pretty large renewables company as well. Some ethics are subjective, but its a pretty decent tool.
Its good to see blackrock covering a few different ESG options.
