Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Future ETFs Channel
  2. GSFP Brings Lucidity to Sustainable Investing
Future ETFs Channel
Share

GSFP Brings Lucidity to Sustainable Investing

Tom LydonSep 23, 2021
2021-09-23

If there’s a hurdle that sustainable investing needs to clear, it’s not appeal to a broad audience. Rather, it’s the sheer fluidity of what qualifies as sustainability and how funds apply that term.

Translation: Funds employing succinct, straightforward approaches may possess advantages over more complex counterparts. The Goldman Sachs Future Planet Equity ETF (GSFP) is an example of an exchange traded fund with sustainable intentions that investors can easily wrap their heads around. That’s vital at a time when the idea of sustainability, though appealing from an investment perspective, remains confusing to investors.

“To many investors, however, the world of sustainable investing can be a confusing mix of terms and approaches. That’s mainly because of a lack of consensus over terminology and, perhaps more significantly, because sustainable investing does not represent a single, distinct investment approach,” says Morningstar analyst Jon Hale.

For its part, GSFP, which debuted in July, seizes upon the theme of sustainability in a simple form. The Goldman Sachs ETF focuses on companies working to reduce greenhouse gas emissions required across a variety of industries. In plain English, GSFP is suitable for climate-aware, carbon neutral-focused investors. Moreover, GSFP, though new, could be on a path to proving to investors that they don’t need to sacrifice upside to employ a climate-aware strategy.

“It’s important to keep in mind that sustainable investing is investing, first and foremost. It seeks competitive returns. There is absolutely nothing concessionary about this intent when investing in public stocks and bonds. But it also recognizes that investment returns are part of a bigger picture that includes concerns about people and planet, as well as profits,” adds Hale.

This low-maintenance sustainable ETF allocates over 77% of its weight to industrial, materials, and technology stocks — appropriate allocations for an ETF designed to feature climate-focused companies. Those sector allocations also speak to avoiding some of the complexities and pitfalls often associated with sustainable strategies.

“The assumption that sustainable investing is a single unified investment approach had led to investor confusion and a mismatch between investor expectations and investment outcomes. It is more accurate to say that sustainable investing covers a range of approaches that are used to apply a sustainability lens to investments,” notes Hale.

Goldman Sachs Future Planet Equity ETF

For more news, information, and strategy, visit the Future ETFs Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X