Investment technique in clear vitality, searching for recommendation : eupersonalfinance

by akoloy


Hi everybody,

I’ve a lump sum of financial savings (past the emergency fund) and I wish to begin investing. I’m between 35 and 40 years previous, I work as a guide, at the moment on contract with a US based mostly firm and I’m Italian.

My horizon of 15-20 years minimal and I have already got a Degiro Italy account which I have not used in any respect.

After lurking this subreddit and others for some time, I’ve been made conscious of the generally diversified ETF-based funding technique (which is completely comprehensible): to build up on a globally invested ETF with bodily replication (the normally talked about VWCE or IWDA for instance which will also be discovered within the FAQ).

What form of ETF I would really like

I need to convey forth that I’d really feel very uncomfortable to proceed in such a manner although, and to know {that a} portion of my cash is straight invested in funds that re-invest in fossil fuels, deforestation et similia. That’s why I would really like, if potential, to stay within the area of Clean Energy ETFs.

I spent a while unearthing some ESG ETFs and it appears to me that the idea of ESG is kind of extensive and diversified, and in some instances yow will discover questionable corporations within the underlying record of investments.

I hung out on https://fossilfreefunds.org/, https://justetf.com/ and https://www.trackinsight.com/en/ to grasp what choices I used to be left with given this “constraint”.

I do perceive that “Clean Energy” alone is perhaps too slender of a monitor to place oneself on, thus I’m open to strategies and I’m open to compromise a bit 🙂

What ETFs I discovered

After a little bit of analysis, sadly, I discovered just one accumulating ETF (there are others on fossilfreefunds.org however they can not be discovered on our aspect of the pond):

I discovered a number of extra (only one accessible on Degiro) however they’re all distributing ETFs and for what I’ve understood to date, they don’t seem to be a good suggestion with the Italian taxation system (however I is perhaps unsuitable) which is 26% on capital features:

  • iShares Global Clean Energy ETF – USD, ISIN IE00B1XNHC34: 4.3 billion euros, since 2007, accessible on Degiro
  • Invesco Global Clean Energy ETF – USD, ISIN US46138G8472: ca. 370 million euros, since 2007, this isn’t accessible neither on Degiro nor on the Italian Exchange, so I do not assume it might be an possibility
  • Invesco Solar ETF USD, ISIN TAN: 2.9 billion euros €, since 2008, this isn’t accessible neither on Degiro nor on the Italian Exchange, so I do not assume it might be an possibility

Do you realize any options? Any different strategies?

Investment technique

Again, I do know the technique is not what most individuals suggest however apart from discovering an ETF that I’m comfy with, there’s one thing else that is not tremendous clear to me:

  • many individuals recommend to separate the publicity between shares and bonds however how does one truly try this? If I decide 80%/20%, after spending 80% of my month-to-month saving on the chosen stock-based ETF, what do I do with the remainder? Find a bond ETF? Do clear vitality bond ETFs even exist?
  • given my age and horizon, what ought to the appropriate break up be?

Thank you!



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