SRI ETF = social responsible index exchange trade fund
I’m a total newbie looking for one world ETF for a 30 year investment to keep it simple and to reduce risk.
ETFs I’m considering are
MSCI World SRI Index (USD) https://www.msci.com/documents/10199/641712d5-6435-4b2d-9abb-84a53f6c00e4
MSCI World Climate Change ESG Select Index (EUR) https://www.msci.com/documents/10199/84e37acb-a91e-8ff3-a909-6f8c7c6306dd
most people I asked know about the SRI but not about the climate change one. climate change’s annual performance is way higher than SRI’s. Very unsure about how to proceed.
Just to be sure, annual performance is way more important than the cumulative index performance - net returns, right? Because here climate change is better than SRI.
If I’m US based, is it better to invest in a USD denominated ETF or does it simply don’t matter if I invest in a EUR denominated one (like climate change)?
How does trump play into all of this?
You’re trying to stay on the road by looking at the road in the rear view mirror. It’s better than nothing because humans usually can’t see forwards in time. My point is that you should not worry too much about that. It could be because people bought the stocks thinking that they would make more money in the future and 10 years later realized they will not and sell it to the next sucker. It could be that genuinely the companies do better. You don’t know, I don’t know.
What are you buying? An ETF usually buys a few stocks from a lot of companies that fit their profile.
What is a stock in a company? It is a tiny fraction of ownership in a company.
Now would you rather have a tiny ownership in the companies that one ETF buys or a tiny ownership in the others? If you don’t know it does not matter.
As for buying in EUR or USD it depends. Tax rules can be different, that you will have to check. Since you use USD the EUR one is likely to change more, for the better or worse because the exchange rate will vary. Again 30 years noone knows how.
Don’t mind Trump, your horizon is 30 years, does not matter if he gets a 3rd term even. He will be dead long before. Unless you think he will crash the economy utterly, but then why are you saving for the future and not buying guns, ammo and non perishable food?