CVLC

tristan-chord

The only one I looked into and have some exposure is CVLC. It's not really aggressive and still included a good 80% of the Russell 1000, but it filters out big tobacco, military industrial, etc.

brewgeoff

Take a look at Calvert Funds. They are one of the more trusted names in ethical investing. They recently launched ETF versions of some of their index funds: CVLC and CVIE. If you look at their mutual fund equivalents you’ll the both have a strong track record.

brewgeoff

You’re going to get shit on for asking about this approach to investing. There are a number of funds that take an index and run an ESG filter to remove some companies. Two examples are SUSA and CVLC. Both have shown an effective track record with similar returns to the SP500. No fund is going to be perfect and if you want something that aligns perfectly with your values then you should just pick individual stocks but if you want an easy way to filter out the worst offenders then an ESG etf works great. CVLC is from Calvert Funds and is a strategy they have been running for a long time, only recently packaged as an ETF. Check out CSXRX to see the 10 year performance of that strategy.

brewgeoff

You’re going to recurve some criticism for your interest in divesting in carbon. The investment corner of reddit can be a bit hostile to any investment philosophies it views as heterodox. What you’re describing is an ESG approach and it’s a valid approach if you prefer it. Folks (already in this thread) have suggested that you’re going to have negative results from taking such an approach but a brief look at funds like Calvert’s CSXRX/CVLC, iShares SUSA or Vanguard ESGV will demonstrate that you can achieve perfectly suitable returns with an ESG approach. All three funds take the approach of starting with an index and filtering out bad actors. Talk to a few investment companies about their approach. Do they pick a portfolio of individual stocks? Do they operate from an index? Follow up with questions about how their approach would reflect your values and how removing oil & gas companies could impact returns.

brewgeoff

Calvert is one of the OGs of ESG investing and they have a few index funds that have a great long term track record. They have historically packaged their indexes as mutual funds but have recently released ETFs based on the same underlying strategy. If you want to see the long term track record check out CSXRX. The ETF equivalent of that fund is CVLC and costs 0.15 which is VERY cheap when you consider the big picture of investment options.

brewgeoff

It likely isn’t a big issue when you’re looking at individual stocks. XOM surprisingly gets included in some ESG funds, because they score well on the ESG ratings for other areas. In short, if you like the company then buy the stock. If you want a general approach to ESG investing then there are funds available that the SP500 or Russ1000 and filter out companies that don’t pass retain thresholds. Funds from iShares or Vanguard typically use the MSCI ESG ratings, see funds like SUSA. There are also companies like Calvert who do their own ESG research and create their own filter. Check out CVLC. (ETF packaging for that fund is now but check out CSXRX for the long term track record of the strategy.) The ESG approach is a perfectly valid approach if you would like to use it. It’s also perfectly valid to ignore ESG. Analyzing ESG risk is just a form of due diligence but because of fractured cultural beliefs there are some people who cast their own feelings onto whether ESG is valid or invalid.

brewgeoff

If you want to reduce over-exposure to mega-cap stocks then consider an equally weighted ETF like RSP. If you want an index fund that runs an ethics filter then consider CVLC (CVLC is a new fund but based on the same strategy as CSXRX. Use that to understand long term performance. I am not aware of any funds that do both.