ETHI as my very first investment?

Hi Sienna.

If ethical investments are important to you, then ETHI is certainly one way to do that. If it screens out companies in a way that you’re happy with, then that’s usually the best way to choose an ethical fund (as they each have different filters on what they include or exclude in their funds).

It definitely has the potential to help you reach your goals, especially if combined with other investments like you’ve said. As you probably know, ETFs which contain lots of companies are more likely to have good long term performance since they’re less reliant on any individual company.

Hope that helps.

Hello!

It’s great to hear that you’re starting your investment journey with a focus on ethical and sustainable investments. ETHI, or the BetaShares Global Sustainability Leaders ETF, is a popular choice among investors who are keen to align their investment portfolios with their values concerning environmental and social governance (ESG).

ETHI specifically targets companies that are deemed to be ‘sustainability leaders’. It excludes companies involved in activities such as fossil fuels, gambling, tobacco, and armaments, and includes those that have a lower carbon footprint relative to their peers. This ETF invests in global companies, providing a diversified exposure which is beneficial for managing risk in your investment portfolio.

Regarding your goal to build wealth over the long term, ETFs like ETHI can be a solid part of your investment strategy. ETFs offer diversification, which is crucial in spreading out risk and capturing growth across different sectors and geographies. ETHI, being focused on sustainability leaders, also positions itself to potentially benefit from the growing global emphasis on green technologies and sustainable practices. Companies leading in sustainability may see increased demand and regulatory favor over time, which could translate to strong performance.

However, it’s also wise to consider diversifying beyond just one ETF. Combining ETHI with other investments, such as other ETFs focusing on different sectors, bonds, or even geographic regions, can further balance your portfolio, reducing risk and smoothing out returns over time.

For instance, you might consider adding an ETF that focuses on emerging markets or a technology-specific ETF to complement ETHI’s sustainability focus. This strategy can help you tap into different growth drivers in the global economy.

Lastly, using a platform like Pearler, which is geared towards long-term investing, can be beneficial. Pearler offers features that support goal setting and tracking, which

Show more.....