Vancouver-based robo-advisor WealthBar Financial Services Inc. is launching a cleantech option for investors looking to align their green values with their investments.
Clients can now add a 5% cleantech option to their portfolios by investing in Invesco Ltd.’s PowerShares Cleantech Portfolio, an ETF that’s based on the cleantech index and designed to provide both performance and diversification.
“What’s good for the environment is also good for your portfolio,” says Tea Nicola, CEO of WealthBar, in a statement.
PowerShares Cleantech Portfolio invests in companies focused on renewable energy, water purification, logistics and transportation in order to reduce any harmful impact on the environment.
In the past three years, the ETF has produced a return of 60% (17% annualized); in contrast, the resources heavy S&P/TSX composite index produced a 14% (5% annualized) return in that time, WealthBar says in a news release.
“We selected this portfolio very carefully because when we look at socially responsible investments, many just weren’t as efficient as we would like,” Nicola says. “But the [PowerShares Cleantech Portfolio] does invest in cleantech effectively and has a track record of performance. That’s why we’re offering a cleantech add-on to our existing portfolios. The world is gradually moving away from fossil fuels, and investors can now, too.”
The portfolio also adopts a macro view by taking on opportunities such as transportation and new logistics in hopes of increasing efficiency to lower our carbon footprint, Nicola adds.
“Other so-called ‘green’ funds don’t always take such a holistic perspective toward cleantech,” she says. “Because of inflexible rules, they can end up avoiding perfectly good green opportunities. We favour a broader, more inclusive approach.”
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