Climate sinners out, benefactors in – this is how the concept of the sustainable stock market barometer from index provider Foxberry could be described. Rather than simply excluding controversial deals, the companies in this index are designed to actively address the world’s major problems. Businesses that curb climate change, ensure insect diversity or cleverly recycle materials have a good chance of being included in the index.
The index makers prove to be comparatively strict bouncers: the companies have to generate more than half of their business with such sustainable business areas, otherwise they will not be shortlisted. The list of members includes, for example, the US company Xylem, whose systems can be used to clean wastewater. Wind turbine builders such as Vestas and Siemens Energy are also represented, as is the Norwegian company Tomra, which makes deposit machines.
Investors can feel particularly good about this index. Anyone who is interested in the course basket will find a suitable ETF from the provider Rize (WKN: A3CN9S). However, the product is still so young that no solid statements can be made about performance and reliability. Investors should therefore first think carefully about the weight they assign to this ETF in their portfolio.