Invest in sustainable ETFs
With a portfolio from Peaks, you invest globally in sustainable index funds. That means you're not just setting money aside for your future, you're also helping make the world a better place.
How Peaks selects sustainable ETFs
Not just any index fund (ETF) can call itself sustainable. The fund (and the companies it contains) must meet legal sustainability criteria. First, the ETF must qualify as sustainable under the EU's Sustainable Financial Disclosure Regulation (SFDR). The ETFs in our portfolios qualify as sustainable based on the characteristics defined in article 8 of the SFDR, with the exception of the index fund that invests in European government bonds.
For the Peaks portfolios, we additionally assess the index funds on their sustainability policies. We prefer ETFs that exclude controversial companies and invest in the most sustainable listed companies from each sector (best-in-class approach). We also prefer fund providers that apply active ownership, holding companies accountable for their sustainable performance.
Exclusions
The index funds in the Peaks portfolios exclude companies that produce controversial weapons. They also screen companies for their involvement in the production or distribution of weapons, alcohol, tobacco, gambling, nuclear power, pornography or genetically modified organisms. Depending on their involvement in these activities, companies may be excluded from the index funds.
Sustainable performance
From the remaining companies, the index funds then select the top 25% most sustainable companies based on their ESG score: their impact on the environment and society, and their governance track record. What matters is not just a company's policy, but also how that policy is put into practice.
Active ownership
Fund providers of sustainable ETFs can engage with the companies on behalf of their investors. This allows the investors themselves to monitor whether companies are still meeting the right standard. The fund providers can also vote on behalf of the investors at shareholder meetings of the companies in the fund.
ESG: Focus on the environment, people and good governance
Reducing environmental impact
The environmental aspect of ESG focuses on companies' activities such as reducing carbon emissions, using and producing renewable energy, conserving water and protecting animal welfare.
Doing good for society
The social aspect of ESG looks at how companies treat their employees, including topics such as fair pay, diversity and inclusiveness.
Responsible business practices
The governance aspect of ESG refers to the level of integrity and transparency with which the company conducts its business.
Scoring high on sustainability
Various research firms rate index funds on their ESG scores. Peaks relies on the ESG scores of a reputable rating agency. In our investment policy, we choose to offer only funds with an MSCI ESG label of A or higher.
In Peaks portfolios, four of the six index funds we offer score AAA, the highest MSCI ESG rating. The remaining two index funds have a score of AA and A.
Source: MSCI
Our sustainable ETFs
Asia Pacific
UBS ETF (LU) MSCI Pacific Socially Responsible
This fund invests in the top 25% of sustainable stocks from Australia and part of Asia, including Japan.
Europe
iShares MSCI Europe
This fund invests in the top 25% of sustainable listed European companies, including SAP, ASML and Danone.
European corporate bonds
Xtrackers II ESG EUR Corporate Bond
This fund invests in bonds of sustainable European companies with high credit ratings.
European government bonds
iShares Core Euro Government Bond
This fund invests in bonds of countries in Europe that use the euro and have high credit ratings. You invest in several countries through this index fund, including France and Germany.
North America
UBS ETF (LU) MSCI USA Socially Responsible
This fund invests in the top 25% of sustainable North American listed companies.
Emerging markets
iShares MSCI Emerging Markets
This fund invests in the shares of the top 25% of sustainable listed companies from emerging markets such as Taiwan, Brazil, India and South Africa.
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