1.iShares ESG Aware MSCI Canada Index ETF
XESG.TO (TSX)
The iShares ESG Aware MSCI Canada Index ETF stands out for its focus on Canadian equities with strong ESG screening, making it an attractive choice for socially conscious investors. With a 1-year return of 29.59% and a solid 5-year return of 76.55%, this ETF offers a compelling performance profile. Additionally, it provides a dividend yield of 1.92%, appealing to those seeking reliable income from financially healthy companies.
Pros:
- Strong ESG focus
- High historical returns
Cons:
- Market cap may limit growth potential
- Sector concentration risk
2.TD Morningstar ESG Canada Equity Index ETF
TMEC (TSX)
The TD Morningstar ESG Canada Equity Index ETF offers investors a low-cost exposure to Canadian equities with a strong focus on environmental, social, and governance (ESG) factors. This ETF is designed for those seeking to align their investments with sustainable practices while benefiting from the growth potential of the Canadian market. Recognized for its commitment to ESG principles, it stands out as a practical choice for socially conscious investors on the TSX.
Pros:
- Low-cost investment option
- Focus on ESG criteria
Cons:
- Lack of detailed performance data
- No dividend information available
3.iShares Jantzi Social Index ETF
XEN.TO (TSX)
The iShares Jantzi Social Index ETF stands out as a top-rated option for Canadian investors seeking socially responsible equity exposure on the TSX. With a strong focus on financially healthy companies, this ETF offers a dividend yield of 1.65% and impressive returns of 29.99% over the past year and 91.65% over five years. By emphasizing sustainable investing, it aligns with the values of those looking to make a positive impact through their portfolio.
Pros:
- Strong historical returns
- Focus on socially responsible investments
Cons:
- Market cap relatively small
- Sector concentration risk
4.BMO MSCI Canada ESG Leaders Index ETF
ESGA (TSX)
The BMO MSCI Canada ESG Leaders Index ETF focuses on Canadian stocks that demonstrate strong environmental, social, and governance (ESG) profiles, making it an ideal choice for socially conscious investors. With a compelling 1-year return of 23.97% and a 5-year return of 58.64%, this fund offers attractive growth potential alongside a dividend yield of 1.87%. Recognized for its commitment to sustainability, it serves as a solid option for those looking to invest in financially healthy companies that prioritize ESG criteria.
Pros:
- Strong ESG focus
- Good historical performance
Cons:
- Market cap relatively small
- Sector concentration risk
5.NBI Sustainable Canadian Equity ETF
NSCE.TO (TSX)
The NBI Sustainable Canadian Equity ETF offers Canadian investors a pathway to sustainable equity exposure, focusing on financially healthy companies. With a 1-year return of 6.91% and an impressive 5-year return of 57.16%, this ETF is also appealing for its dividend yield of nearly 1%. Ideal for those seeking a blend of growth and sustainability, it stands out in the market for its commitment to responsible investing.
Pros:
- Focus on sustainable investments
- Strong 5-year return
Cons:
- Lower dividend yield
- Market cap may limit growth potential
6.Invesco S&P/TSX Composite ESG Index ETF
ESGC (TSX)
The Invesco S&P/TSX Composite ESG Index ETF focuses on companies that meet environmental, social, and governance criteria within Canada. Despite a challenging performance, with a one-year return of -4.42% and a significant five-year decline of -75.37%, it holds strong analyst ratings, including a "Buy" from Citigroup and Jefferies, and an "Outperform" from Wells Fargo, signaling potential for recovery in the ESG space. Investors may find this ETF appealing as it aligns with sustainable investing trends while navigating recent market challenges.
Pros:
- Tracks ESG-screened index
- Potential for recovery in ESG investments
Cons:
- Negative returns over the past year
- No market cap data available
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Final Words
As you consider socially responsible investment stocks this September, remember to evaluate the options available to you, such as the iShares Jantzi Social Index ETF and Invesco S&P/TSX Composite ESG Index ETF. Take time to compare their performance and conduct thorough research to ensure your investments align with your values and financial goals.
Frequently Asked Questions
The iShares Jantzi Social Index ETF is a Canadian socially responsible equity ETF that aims to deliver sustained capital appreciation by closely tracking the performance of the Jantzi Social Index. It is traded on the TSX under the ticker XEN.TO.
The iShares Jantzi Social Index ETF has shown a year-to-date return of 17.25% and a one-year return of 29.99%. Over the last three years, it has achieved an impressive return of 85.42%.
The iShares Jantzi Social Index ETF has a dividend yield of approximately 1.65%. Dividends are distributed quarterly, with the next dividend set at $0.2230.
As with any investment, risks include market volatility and changes in the economic environment. The ETF tracks an index, which means it is subject to the performance of the underlying companies within the Jantzi Social Index.
The iShares Jantzi Social Index ETF focuses on long-term capital appreciation and tracks the Jantzi Social Index, while other socially responsible investments may vary in their focus on specific sectors, returns, or ESG criteria. It's essential to evaluate individual funds based on your investment goals.
The iShares Jantzi Social Index ETF has a market cap of approximately $184.06 million. This can be an indicator of the fund's size and stability in the market.
