What is Socially Responsible Investing?
Socially Responsible Investing (SRI) means investing in companies that meet a certain threshold of social responsibility. SRI takes into consideration environmental impact as well as social and governance concerns. SRI has become an incredibly popular way to invest, growing tenfold over the past 20 years—there are now $22 trillion in assets worldwide in SRI funds.
What fees does Wealthsimple charge for SRI portfolios?
Wealthsimple charges the same fees for SRI portfolios as non-SRI portfolios (more on how fees work here). However, the fees charged by the firms that manage the ETFs are modestly higher than the fees for regular ETFs—a weighted average of 0.10% to 0.14%, compared with around 0.1% for regular Wealthsimple portfolios. It’s not much of a difference, but it is a difference. And there is a good reason for the higher fee: someone smart needs to screen for the most socially responsible companies by combing through reams of data and designing cutting-edge analysis tools. And smart people usually don’t work for free.
Which ETFs are in Wealthsimple's SRI portfolios?
Wealthsimple's SRI portfolio contains the following ETFs:
|Vanguard ESG U.S. Stock ETF||ESGV||Market cap weighted index composed of US stocks and screened for certain environmental, social, and corporate governance (ESG) criteria.|
|Vanguard ESG International Stock ETF||VSGX||Global stocks, excluding US companies, screened on broad ESG criteria.|
|SPDR Portfolio Long Term Treasury ETF||SPTL||Long Term Treasury ETF with exposure to US Treasuries with a remaining time to maturity of 10 or more years.|
|PIMCO 15+ Year U.S. TIPS Index ETF||LTPZ||Market-weighted index of US Treasury inflation-protected securities with a remaining maturity of 15 years or more.|
|Schwab Intermediate-Term U.S. Treasury ETF||SCHR||Fixed Income ETF tracking the total return of the Bloomberg Barclays US Treasury 3-10 Year Index.|
|iShares National Muni Bond ETF||MUB||Fixed Income ETF composed of investment-grade U.S. municipal bonds. Used in taxable accounts in place of SCHR.|