It should be noted that a sustainable ETF is a type of mutual fund that is traded on an exchange as if it were a stock. These types of funds can be purchased at the current price, without having to wait for the market to close before making a purchase.
ETFs are characterized by replicating an index of stocks or bonds participating in the stock market; trading in this type of stock is usually done through real-time applications or websites.
Features of a sustainable ETF
A sustainable ETF is not called that for no reason. It is referred to as balanced because it has distinctive characteristics:
- Environment: This is one of the main aspects of sustainable investing, which is to generate growth without harming or causing damage to the planet.
- Social: This is the contribution that a company generates for society.
- Corporate governance: the element that generates stability in companies and ensures proper management.
What are the advantages of investing?
By investing in sustainable ETFs, you have, first of all, lower investment costs. Unlike traditional funds, investing in exchange traded ETFs guarantees liquidity – an investor can buy and sell any number of investment certificates at any time during the trading session. He does not have to wait, as in the case of investing in traditional funds, for the redemption of the titles to acquire the money earned (which sometimes takes even a few days). The funds obtained from the sale of ETF investment certificates are immediately transferred to the investor’s account.