Best Climate Change ETFs 2023

Exchange Traded Funds (ETFs) have quickly gained popularity as a versatile investment product for those who wish to help mitigate the effects of climate change while achieving potential financial returns.
In this article, we will explore a selection of the most interesting climate change ETFs, offering a detailed overview of the funds that allow investors to support the transition to a greener future, while gaining a growth opportunity in the renewable energy sector, energy efficiency and more.
1 – Ossiam Bloomberg Japan PAB NR UCITS ETF H1C (EUR Hedged) The Ossiam Bloomberg Japan PAB NR UCITS ETF H1C (EUR Hedged) is an investment option dedicated to the sustainable and responsible sector.
The ETF tracks the Bloomberg PAB Japan Large & Mid Cap (EUR Hedged) index, which in turn tracks Japanese mid- and large-cap stocks.
The distinctive feature of this index is its emphasis on reducing greenhouse gas emissions, with the aim of lowering the intensity of such emissions by at least 50% compared to the reference investment universe (the Bloomberg Japan Large index & Mid Cap) and an average of 7% per year.
A strong point of this ETF is its very low annual total expense ratio (TER) of 0.25%.
This extremely competitive TER makes it attractive to cost-conscious investors.
The ETF employs a full physical replication strategy, meaning it physically purchases all components of the underlying index.
This investment method helps ensure a close correlation between the performance of the ETF and that of the reference index.
It should be noted that the Ossiam Bloomberg Japan PAB NR UCITS ETF H1C (EUR Hedged) is currently one of the smallest funds in terms of assets under management, with a value of €1 million.
This relatively limited size may result in lower fund liquidity.
The fund has demonstrated positive performance over various time horizons.
Over the last five years, it has recorded an increase of almost 42%, with a positive return also in the current year.
However, it should be noted that 2022 saw a contraction in performance, with -5.76%.
Despite this correction, the overall long-term return appears to be positive since launch in November 2017.
The ETF is designed to maintain long positions and focuses on Japanese companies that demonstrate a strong commitment to reducing greenhouse gas emissions.
Short-term volatility is moderate, suggesting some stability in performance.
However, as with any stock investment, there is a risk of market fluctuations.
The Ossiam Bloomberg Japan PAB NR UCITS ETF H1C (EUR Hedged) represents an interesting opportunity for investors looking to integrate sustainable investments into their portfolio, with a specific focus on Japan.
The low TER makes it cost-effective, and the strategy of reducing greenhouse gas emissions helps promote a responsible investment perspective.
However, investors should carefully consider the fund's relatively small size and lower liquidity.
As always, it is advisable to consult a financial advisor before making any major investment decisions.
read also The best S&P500 ETFs to invest in the American market 2 – Ossiam ESG Low Carbon Shiller Barclays CAPE® US Sector UCITS ETF 1A (EUR) The Ossiam ESG Low Carbon Shiller Barclays CAPE® US Sector UCITS ETF 1A (EUR) ETF is a Actively managed fund that focuses on a unique investment approach, targeting a combination of ESG (Environmental, Social and Governance) factors and evaluation criteria of sectors with low CAPE (Cyclically Adjusted Price Earnings) within the market US stocks.
In this review, we will look at the key features and performance of this fund.
This ETF invests exclusively in stocks that are part of the Shiller Barclays CAPE US Sector Value Index.
The index selects the five sectors with the lowest relative CAPE within the S&P 500.
CAPE is an indicator that takes into account the relative cost of a sector's performance based on current and long-term historical price and yield data.
In other words, the fund looks for sectors that have shown the worst performance in the previous 12 months.
Components of each selected sector receive a 25% weighting, and this allocation is updated monthly.
Furthermore, the fund excludes companies involved in environmentally, socially and ethically controversial practices.
The ETF uses full physical replication, meaning it physically holds all of the securities that make up the underlying index.
This helps ensure that the ETF's performance tracks that of the index as closely as possible.
The ETF's total expense ratio (TER) is 0.75% per year, which may seem relatively high compared to some other passive ETFs, but justifiable given the fund's active management and ESG focus.
The ETF manages assets of approximately €483 million, which indicates that the fund has a stable investor base and a significant size that should contribute to the ETF's liquidity.
The ETF is actively managed, meaning a management team makes investment decisions based on ESG factors and CAPE data.
This could involve risks associated with management errors or choices that turn out to be wrong.
However, the fund has demonstrated good long-term performance, with a positive return over three and five years.
Short-term volatility is relatively high, but overall, the fund appears to have generated a good return relative to its benchmark.
Over the last 12 months, the ETF has, however, recorded a slightly negative performance, partly due to global economic challenges and uncertainties.
In conclusion, the Ossiam ESG Low Carbon Shiller Barclays CAPE® US Sector UCITS ETF 1A (EUR) offers an attractive approach to sustainable investing through the combination of ESG factors and low CAPE sector allocation.
However, investors should be aware of the risks associated with active management and short-term market fluctuations.
As always, it is advisable to consult a financial advisor before making any significant investment decisions.
read also The ranking of the best High Dividend ETFs 3 – BNP Paribas Easy Low Carbon 100 Europe PAB UCITS ETF The BNP Paribas Easy Low Carbon 100 Europe PAB UCITS ETF is an investment option that stands out for its emphasis on environmental and social responsibility .
The ETF tracks the Low Carbon 100 Europe PAB index, which carefully selects 100 European stocks based on low carbon emissions criteria and a high ESG (Environmental, Social and Governance) rating.
In this review, we will look at the key features of this ETF, its past performance and its role in responsible investing.
The Low Carbon 100 Europe PAB index is made up of European companies that demonstrate a tangible commitment to reducing carbon emissions and meeting ESG standards.
This selection approach aims to promote informed and sustainable investment.
Full physical replication of the ETF means that the fund physically holds all of the underlying securities, allowing investors to directly participate in the performance of the companies included in the index.
A notable aspect of this ETF is its low annual total expense ratio (TER) of 0.30%.
This is an important benefit for investors, as a lower TER means greater efficiency in net returns.
Passive management and low cost are a notable strength for the ETF.
The BNP Paribas Easy Low Carbon 100 Europe PAB UCITS ETF is one of the largest funds of its kind, with assets under management of over €1 billion.
This considerable size helps ensure good liquidity and overall stability of the fund.
Over the past five years, the ETF has demonstrated solid performance, with a positive return of nearly 38%.
However, it should be noted that the year 2022 saw a contraction of -10.78%, perhaps due to particular economic or market conditions.
Over the long term, the fund has nevertheless recorded a positive overall performance since its launch in June 2017.
The ETF is biased towards a long position and focuses on European companies that meet rigorous sustainability criteria.
Its short-term volatility is relatively moderate, suggesting stability in performance.
However, it is important to keep in mind that, as with any investment, there are risks associated with market fluctuations.
The BNP Paribas Easy Low Carbon 100 Europe PAB UCITS ETF is an attractive choice for investors looking to integrate environmental and social responsibility into their portfolios.
With its low TER and overall positive long-term performance, the ETF offers a cost-effective and responsible solution for those looking to invest in sustainable Europe.
However, investors should always carefully consider their financial goals and consult a financial advisor before making any significant investment decisions.
read also ETFs to protect yourself from inflation Disclaimer The information and considerations contained in this article should not be used as the sole and main support on which to make investment decisions.
The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings.