US Vegan Climate ETF: an Ultimate Socially Conscious Investor’s Stock Fund
Are you looking to make an investment in the stock market, but have concerns about how certain businesses affect the environment, human rights, or animals? Or do you have a vegan lifestyle, and do not know what companies to put your money in, according to your beliefs? There are many ESG (environmental, social, governance) considerations related to companies, but you may not want to place your money in just one or a few of them, in order to diversify, and some of them may not meet all of your requirements.
The US Vegan Climate ETF (Ticker: VEGN) is a stock ETF (exchange traded fund), meaning it is a fund traded on the stock exchange that contains many companies in its portfolio of investments.
From its website:
“The US Vegan Climate ETF (Ticker: VEGN) seeks to track the Beyond Investing US Vegan Climate Index (VEGAN). VEGAN screens large cap US companies for a variety of ESG (Environmental, Social, Governance) considerations, primarily animal harm and exploitation, as well as fossil fuels, environmental damage, and human rights.
By tracking the index, VEGN seeks to invest in companies that offer:
A humane approach. VEGN seeks to provide market-capitalization-weighted exposure to US companies that satisfy its rigorous ESG standards, limiting its largest holdings to 5% of the total portfolio.
Animal-friendly. VEGN aims to exclude from consideration companies that harm animals, screening out companies that are involved in animal testing, animal-derived products, as well as animals in sports or entertainment.
Good for the environment, good for people. VEGN screens out companies involved in fossil fuels and their use in energy production and also excludes companies involved in military and defense, as well as human rights abuses.”
VEGN has come close to matching the S&P 500 index, which is a generally accepted measure of market performance, since its inception in September 2019. Its expense ratio is .60%.
Note: Some people may dispute that the VEGN ETF does not meet their standards for being vegan, as it invests in businesses, such as financial services companies, that do business with other companies that do not follow vegan practices. This is difficult to avoid in a fund that invests in a large group of stocks, however. For these people, investing in individual companies that meet their standards may be the best approach for them.
Also, if you do not find the companies or ETFs that meet your ESG and/or vegan standards, you may decide that you wish to instead donate money to nonprofit charities that help the planet in the way you would like, such as environmental, animal-friendly, and/or human rights organizations.
Disclaimer: This article is meant for informational and example purposes only. I do not have any personal association or investment in the above listed security. I am not a financial advisor, and am not promoting the purchase or sale of any kind of securities. Also, I recommend that investing in stocks or ETFs should be done within the framework of a comprehensive financial plan, with risks taken into account. You may also want to consult with a Certified Financial Planner.