We aren’t going to go into how to compare ETFs from ground up. This post is about giving you some ideas on how you can compare ETFs from a sustainability perspective.

Now we know that’s no simple task. This is a highly complex and evolving subject. But we can give you 3 ideas on where you can start:

1. Fund Objectives

2. Alignment with UN SDGs

3. Voting History

Comparing Fund Objectives

The fund objective is a key factor to consider when comparing ETFs. 

When it comes to sustainable investing, it's important to consider whether the ETFs objective aligns with the investor's sustainability goals. Some ETFs may focus on specific sustainability themes such as renewable energy, clean technology, or gender diversity, while others may have a broader sustainability focus. 

You can review the fund's documents and description  to understand its objective and investment strategy. Some ETFs for example may use negative screening, where they exclude companies that engage in activities deemed harmful to the environment or society. 

Reading this will help you determine whether the fund aligns with your investment goals and whether it is consistent with your values.

Compare Alignment with UN SDGs

The United Nations Sustainable Development Goals (SDGs) provide a framework for achieving a more sustainable and equitable world. When comparing ETFs with a focus on sustainable investing, investors may want to consider the revenue alignment of the fund's investments with the UN SDGs. 

That means how much the revenue of the companies underlying a fund are aligned with particular goals.

There are 17 UN SDGs, here are a few of their objectives:

1. End poverty in all its forms everywhere
2. Ensure healthy lives and promote well-being for all at all ages
3. Ensure access to affordable, reliable, sustainable and modern energy for all
4. Take urgent action to combat climate change and its impacts

A significant proportion of companies underlying a fund may primarily generate revenue from products and services aligned with a particular SDG, while other funds may be aligning with a broader range of SDGs.

If you’re interested in sustainable investing this is definitely an angle worth diving into.

Compare Voting History

When evaluating ETFs with a focus on sustainable investing, investors may want to consider the asset manager's voting history on environmental and social issues. 

Asset managers have the power to vote on behalf of their clients at company shareholder meetings, and their voting decisions can influence corporate behavior on sustainability issues.

When reviewing an asset manager's voting history, you can consider how the manager has voted on key environmental and social issues, such as climate change, human rights, and executive compensation. 

GOODFOLIO ETF Comparison tools

GOODFOLIO is an investing platform designed for conscious investors.

As part of our platform, we have built comparison tools which allow you to compare both financial and non-financial aspects of funds. That way you can invest for yourself, as well as the future of our planet. 

Quickly compare UN SDG revenue alignment, environmental footprint and voting history of asset managers.

And that’s just the tip of the iceberg, we also offer:

1. Fast sign up - typically onboard in less than 10 minutes‍

2. Screened and categorised ETFs - All funds are screened to meet our transparency and sustainability information standards

3. Impact reporting - up to date reports including UN SDG revenue alignment

4. Cutting edge tools -  ETF comparison tools based on impact, risk and returns

5. Sustainable ISA - create a new ISA or transfer your existing one with our help

6. Great customer support - we are always here to help!

Join the future of investing and start your free GOODFOLIO account today!

As with all investing, your capital is at risk.