ESG ETFs with sustainability filters

Exchange traded funds, or ETFs for short, are a low-cost alternative to actively managed investment funds and have been very popular for years. The range of ETFs that include sustainability criteria in their composition is now also extensive. Investors can choose between different approaches: The best-in-class approach includes companies from all sectors that have been rated best in terms of ESG criteria. Other ETFs apply the exclusion method and completely exclude controversial industries such as nuclear energy or weapons manufacturers. In addition, there is the option to set the investment focus on targeted topics, such as fair corporate governance, climate protection or circular economy.

As of 2022, 600 ETFs and 60 Active ETFs focus on sustainability - and the trend is rising. With the broad range of sustainable ETFs, investors can already align their entire portfolio in an environmentally, socially and climate-friendly way. The complete overview of all sustainable ETFs below is based on the EU Disclosure Regulation.

Classification according to the EU Disclosure Regulation

The EU regulation on sustainability-related disclosure requirements, also known by the English acronym SFDR for Sustainable Finance Disclosure Regulation, sets standards by which risks and sustainable investment objectives are to be assessed. The uniform framework is intended to help identify and compare securities with a sustainable approach. ETFs that fall under Article 8 or 9 of the SFDR are considered sustainable. Article 8 refers to securities with environmental or social criteria, while Article 9 refers to securities with an intended impact. Both characteristics are also referred to as light green and dark green, respectively.