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?
These would be:
BlackRock ESG Multi-Asset Growth Portfolio UCITS ETF (MAGG) Exchange-Traded Funds (ETFs) | iShares UK – BlackRock
BlackRock ESG Multi-Asset Moderate Portfolio UCITS ETF (MAMG) Exchange-Traded Funds (ETFs) | iShares UK – BlackRock
BlackRock ESG Multi-Asset Conservative Portfolio UCITS ETF (MACG) Exchange-Traded Funds (ETFs) | iShares UK – BlackRock
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
A plus from me. I could see these potentially being attractive to ISA and SIPP holders
So what exactly is ESG, and why is it good?
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
Its a way of attempting to quantify the environmental, social, and governance impacts of a company
Oh interesting - so a way for people to invest ‘ethically’ as well then, depending on what your ethical outlook is…
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.
This looks excellent, exactly what I’m looking for my regular investing - a responsible hedge against my poor individual stock picking!