One school of thought says that a socially responsible investment is ineffective because it lowers your returns.
If you want to change the world: Invest in profitability, achieve the highest possible returns, and then sow your profits for the purposes you support.
I do not lack sympathy for this line of reasoning.
While there are some industries I just can not touch, but my job is to help you, my readers, make money. So I can justify a socially responsible investment only if it adds to the bottom line.
As a trader, I try to maintain my emotions and stick to numbers. And for the most part, I keep politics away from my trade.
As an example: when I write about the incredible opportunities I see in renewable energy, it’s because I expect there to be a load of money to make in trading.
Do not get me wrong: I am Love The idea that the companies we buy provide cleaner air and reduce carbon emissions. I want to leave my son a better world than the one I grew up in, just as my parents wanted the same thing for me.
But altruism only brings you so far.
Well, there’s good news on this front. It turns out that “good” companies are usually good stocks.
Take your investment cake … and eat it too!
That’s the logic behind it Goldman Sachs JUST US Large Cap Equity ETF (NYSE: only).
A JUST ETF is a broad and large ETF that focuses on companies that exhibit “just” business behavior, at least as measured by JUST Capital.
Just behavior may seem a bit subjective, but index managers are limited to objective criteria. JUST Capital analyzes each stock in Brussels 1000, passing over 145,000 data points across 88 unique indices such as:
- Employee care.
- Customer concerns.
- And environmental impacts.
JUST Capital then assigns a score to each share.
This is not that different from what I do in my stock power rating system, where I measure every stock in our universe across six major factors, 21 sub-factors and 75 specific indices within those sub-factors.
Shares rated “bullish” in my system are set to enjoy double returns on average from the market during the following year, and stocks with a “strong bullish” rating in my system are set to deliver returns that are. triple That of the overall market.
Well, JUST’s returns are not really This are good. But they are still stable.
After eliminating stocks with low scores – i.e. those with a low rating relative to employees, customer satisfaction, environmental record, etc. – it simply managed to adjust the performance of its index.
Investors Managed to invest in “good” companies without sacrificing their returns in the process. I like this!
JUST is designed to be a replacement for the Russell 1000 or S&P 500 index fund, so you will see many of the same names. The largest holdings are Apple Ltd. (NASDAQ: AAPL) And Microsoft Corp. (NASDAQ: MSFT), Both of which rank the bullshit in my stock rating system in stocks, with combined scores of 77 and 69 respectively.
The future of JUST ETF
I think it is likely that over time JUST will eventually achieve better performance in standard index funds.
Clearly better companies will do a better job of customer retention and adaptation than their more stubborn counterparts. A position of buying and holding here can make sense for a long-term portfolio.
But in the end, your returns are going to be in the ballpark of market returns. If you want crushing market returns, you will need to become a little more professional.
And that’s what we do in Green Zone Fortunes.
If you want to know why I’m so bullshit in the mega trend of renewable energy, Watch my “Infinite Energy” presentation now.
My four stock recommendations related to “Infinite Energy” do amazing things to make our world a more sustainable place.
But they also make early investors a nice slice of change.
My four choices have risen by an average of 15% since March 4 – and this is against the background of increased market volatility.
I expect them to cost much more in the coming months and years.
To find out how to access renewable energy inventory recommendations (and more) Click here Watch my “Infinite Energy” presentation now.
For good profits,
Chief Investment Strategist
JUST ETF Shows Good Companies = Good Returns — Let’s Do Better Source link JUST ETF Shows Good Companies = Good Returns — Let’s Do Better