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The product I am looking for is a diversified ETF like MSCI World, excluding sectors that I do not want my money to be invested in.

Ideally, I would be able to choose a basis ETF (like MSCI World), and then just tick checkboxes of sectors or companies to exclude by criteria like involement in, e.g.

  • extracting or selling fossil fuels
  • industrial meat farming
  • distribution of deep-fried candy bars
  • even more random preference.

Does this product exist?

I know some 'pre-made' ETFs like that exist (e.g. MSCI WORLD SRI, MSCI ACWI Low Carbon Target ETF), but these would never meet all of my personal preferences.

And if this product really doesn't exist, why should it be hard to build this? There should be quite some demand, given vastly diverse social preferences of individuals, e.g. due to religion, etc..

perennial_noob
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hansonhill
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2 Answers2

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They have ETFs for most of what you listed above.

Except the deep-fried candy bars. You know that's just a distributed candy bar that is THEN fried right?

They have a few religious ETFs as well as some socially responsible ones.

There is no reason to make one based on a single person's preference though - ETFs make their money on fees. For that they need VOLUME.

Move Volume = More Money

Also, there are over 1,411 ETF's in the US as of 2014. That means there are a lot of options already.

You could always create your own if you are a great salesperson though.

Source

Ross
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I believe that kind of micro-tuning for every participant would make the operating costs of the fund intolerable. A better approach, if this is important to you, would be to find a fund or funds designed for people who share your criteria.

If the goals and criteria aren't mutual, a mutual fund -- traditional or ETF -- is probably not the right tool.

keshlam
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