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?

  • BigMikeInAustin@lemmy.worldEnglish
    2·
    6 days ago

    I understand the moral desire to choose responsible companies.

    I “interviewed” some advisors before I knew of ETFs. They asked if I had brand preferences, like Coke vs Pepsi, or McD vs Taco Bell, so that I could avoid investing in companies that I didn’t like. From that I realized those types of investors just cared about getting me into any stock to turn commissions and not about my personal income growth. I was way too small to affect anything, but I could lose out on income based on my personal flavor preference.

    So I would say the same about picking socially responsible ETFs. What is socially responsible is completely up to some person and will likely not align with your preferences.

    And after participating in many studies in college, and just life, I’ve learned that at large scales, when it comes to your pocketbook, the large majority of the time, the non-ultra-rich person should assume the system will go to selfish people over good-for-the-group people.

    So, unless you are investing billions and trying to create the change yourself single handedly, just choose the ETF that works best for your pocketbook.

    The amount of ownership, responsibility, and promotion you get of the evil a large corporation is doing through an ETF is basically non-existent, at the average human scale.