Full episode: Market Call for Thursday, March 14, 2019
Tim Nash, founder of Good Investing
Focus: Green stocks and ETFs
It’s easy for environmentalists to be pessimistic right now. As we accept that we are now living in a rapidly changing climate with governments who dismiss mounting risks and continue to get elected around the world. It feels like sustainability issues keep getting thrown on the backburner as economic uncertainties dominate today’s discourse. We continue to be distracted by short-term noise, ignoring long-term existential risks to the environment upon which our entire economy depends.
That said there are glimmers of hope on the horizon. Costs for many green technologies have continued to drop, making them economically competitive with traditional options. Big banks are seeing the financial opportunity in a low-carbon transition and have already started moving. Last year, TD committed to $100 billion in loans, financing and asset management by 2030. Once TD started counting, they found $22 billion in the first year alone.
Politically, there is lots of talk of a Green New Deal in the U.S. This level of government support would galvanize green sectors and accelerate the shift to a green economy. It’s too early to tell whether this will become a major plank of the Democratic Party’s election platform, but it’s looking like climate action might become a major election issue in 2020.
HORIZONS GLOBAL SUSTAINABILITY LEADERS ETF (ETHI.TO)
This ETF is the first in Canada to be both socially responsible and fossil fuel free. It only includes large-cap companies with a carbon footprint 60 per cent below their industry’s average. As such, this is a great option for Canadians who want to invest in companies that are ahead of the curve in transitioning to a low-carbon economy.
VANECK VECTORS ENVIRONMENT SERVICES ETF (EVX.N)
This ETF includes companies who clean up pollution. It’s been a top performer among green ETFs over the past five years. This is a good option for green investors while we wait for more climate-friendly policies.
NFI GROUP (NFI.TO)
This company builds buses with an expertise in hydrogen fuel cell, hybrid and all-electric drivetrains. Cities are leading the market in adopting green technologies and it’s a no-brainer to shift to more efficient bus fleet that will reduce operating costs while also reducing emissions.
PAST PICKS: Dec. 12, 2018
CHANGE FINANCE U.S. LARGE CAP FOSSIL FUEL FREE ETF (CHGX.N)
- Then: $19.05
- Now: $20.21
- Return: 6%
- Total return: 7%
ISHARES MSCI GLOBAL IMPACT ETF (SDG.OQ)
- Then: $55.17
- Now: $58.20
- Return: 5%
- Total return: 6%
UNIVERSAL DISPLAY CORP (OLED.O)
- Then: $97.06
- Now: $154.69
- Return: 59%
- Total return: 60%
Total return average: 24%