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You Asked and We Got it: Socially Responsible Investing in the UK and Canada

 

When we covered Swell Investing’s impact investing portfolios, some of our readers asked for sustainable investing options in the UK and Canada. We heard you and we’ve got good news. There is a company that is now offering Socially Responsible Investing (SRI) for residents of the UK and Canada.

SRI is ushering in the future we want. Whether it’s green technology, gender parity, affordable housing, or another social impact theme, there are more options today for investing in what matters to you. The good news is that it’s possible to do this and make comparable money to broad market index investing. 

Now Available in UK and Canada

Wealthsimple is a robo advisor that recently launched Socially Responsible Investing options for residents of the UK and Canada. To be considered socially responsible, the portfolio needs to focus on companies that help lower carbon emissions, promote diversity and  invest in clean technology for the future.

Related content: 4 Ways to Make Real Money With Sustainable Investing 

Socially Responsible Investing Options

Depending on your location, Wealthsimple offers a portfolio of different Socially Responsible Investing ETFs. With these funds, you can align your money with your values and in the process bring more joy and prosperity to your life.

United Kingdom 

WealthSimple charges 0.7% in fees to manage a diverse portfolio covering*:

  • Global ESG Leaders
  • Clean Energy
  • Sustainable Bonds
  • Gilts

*Note: the underlying assets in this portfolio may have additional fees, these were not immediately available from Wealthsimple.

Canada ETF Options

Wealthsimple charges a flat fee of 0.50%. This is added on top of the expense ratio fee for each of the underlying ETFs*:

ETF Expense Ratio 1 Year Returns 3 Year Returns 5 Year Returns
CRBN-Low Carbon (CRBN 0.20% 12.73% 7.05% N/A
Cleantech (PZD) 0.68% 15.09% 12.63% 11.88%
Human Rights (VIDI) 0.68% 25.85% 8.32% N/A
Environment (XEN) 0.55% 5.03% 8.12% 4.91%
Government Securities (ZFM) 0.22% -1.63% 0.08% 1.91%

*Your asset allocation across each of these ETFs is based on your chosen risk profile (Conservative, Balanced, Growth).

United States ETF Options

Wealthsimple charges a flat fee of 0.50%. This is added on top of the expense ratio fee for each of the underlying ETFs.

ETF Expense Ratio 1 Year Returns 3 Year Returns 5 Year Returns
Low Carbon (CRBN) 0.20% 12.73% 7.05% N/A
Cleantech (PZD) 0.68% 15.09% 12.63% 11.88%
Socially Responsible (DSI) 0.50% 13.06% 10.03% 12.20%
Gender Diversity (SHE) 0.20% 13.06% N/A N/A
Local Initiatives (BAB) 0.28% 4.54% 3.38% 3.88%
Affordable Housing (GNMA) 0.12% -0.92% 0.31% 0.93%

*Your asset allocation across each of these ETFs is based on your chosen risk profile (Conservative, Balanced, Growth).

Overview of Wealthsimple

  • Canada & USA management fee: 0.5% for $0-100k in assets, 0.4% fee for $100k+.
  • UK management fee: 0.7% for £0-£100K in assets;  0.5% for £100K+ 
    Note: while these fees seem low (they are certainly reaonsable), be aware that these are in addition to the underlying ETF expense ratio. By comparison, Swell charges a single all-in fee. However, Swell is not available in the UK and Canada.
  • Large variety of account options: Personal, Traditional IRA, Roth IRA, SEP IRA, Joint, Trust, Smart Savings
  • Plan to match your money goals: Conservative, Balanced, Growth allocation profiles
  • Based on Modern Portfolio Theory to help maximizes returns
  • Free portfolio review: money experts available to ask questions  
  • If you transfer $5,000 or more from another account the will cover transfer fees
  • Good referral and connecting benefits

Note: if you feel comfortable setting up your own investments, you can create your own portfolio of sustainable ETFs and skip the management fee. Just keep in mind that robo advisors also have benefits, like not having trading fees. While some brokers offer commission free ETFs (aka no trading fees), these are usually reserved for the broader market ETFs. Not many sustainable ETFs will be trade fee free.

Start Investing for your Future Today

Let your money make a difference while it is growing. Make the choice to invest for your future and the future of our planet by supporting the companies that are solving the world’s biggest challenges.  

Related Content: Start Impact Investing For As Little As $50


Photo by Anna Jiménez Calaf

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