Sustainable investing with ETFs
With True Wealth, you can invest in companies that are among the best in their class. Benefit from our cost-efficient sustainable investment solution.
Your investment with ESG criteria
Sustainable investing combines returns with personal values and principles.
Whether you opt for our asset management solution, the 3rd pillar or an ETF portfolio for your child: We offer you the choice between the global and the sustainable investment universe.
Our promise: We select the most cost-efficient, liquid and suitable ETFs for you.
When you invest sustainably with us, we construct your equity portfolio preferably from ETFs on sustainable indices such as the MSCI SRI indices. Only the best quarter of companies are admitted to these indices – the 25 percent with the most sustainable business practices.
Companies that generate a significant proportion of their turnover in the following harmful areas are generally excluded prior to this screening:
- Weapons
- Alcohol, Tabacco
- Genetically Modified Organisms
- Nuclear Power
- Adult Content
- Gambling
According to MSCI, indices with the suffix SRI focus on companies with particularly high ESG ratings.
What are the three pillars of ESG?
Environment
- Environmental protection
- Climate change
- Scarcity of resources
- Biodiversity
Social Responsibility
- Occupational safety
- Health protection
- Employee rights
- Compliance with ESG standards by suppliers
Governance
- Corporate governance
- Risk management
- Accountability
- Ethical business practices
A comparison of returns and costs
Sustainable ETFs aim to achieve returns comparable to their conventional counterparts over the long term. We do not use single stock picking, as this is tantamount to active management and incurs high costs. In our sustainable portfolios, we use market capitalization-weighted ETFs that track strict SRI indices. Let's take a look at the past returns of these indices:
January 2019 to December 2023: Sustainable SRI indices have either outperformed or underperformed their traditional counterparts in the various markets.
Due to the additional criteria according to which the companies must be assessed, sustainable investment instruments are somewhat more expensive than their conventional counterparts. On average, the external product costs are around 0.08 percent higher and amount to 0.21 percent.
However, our asset management fee for sustainable portfolios remains unchanged: 0.25 to 0.50 percent per year, depending on the amount invested. We report all costs transparently. Click here for the cost overview.
Impact on society and the environment
Sustainable investing should not be seen as a substitute for sustainable action and political decisions. ESG investments can certainly make sense if they make your investments more compatible with your ethical principles. However, you should not assume an impact beyond this or an excess return with a liquid portfolio based on sustainability criteria (more on this in the blog Greenwashing: The limits of ESG and impact investing).
How do I choose a sustainable investment strategy?
You can easily select a sustainable investment strategy in our app or in the desktop version of our investment solution. There are two investment universes to choose from: the global universe and the sustainable universe.
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