ETF Insights

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Well Worth

SRI is interesting but it requires a lot of work, right? 

Well Worth

There is no doubt that SRI requires a great deal of work. It is generally based on a stringent process whereby companies are evaluated against a set of environmental, social and corporate governance (ESG) criteria. That means elaborating these criteria and then screening each potential company.

Many investors therefore prefer to "outsource" this task. One excellent way to do this is through the use of SRI-based ETFs. Here, investors rely on the index provider to carry out the screening. This can be a very effective approach, as many of today’s providers have built up extensive expertise both in SRI criteria and analysis methods.

MSCI for instance, which provides the indices for UBS’s SRI ETFs, was one of the first providers to release an SRI index family. Today it is the world's largest provider of environmental, social and governance research, valuation and monitoring tools.

For those convinced of the SRI investment case, passive SRI investing offers many benefits: deep SRI know-how at little or no extra cost and exposure to a wide range of SRI markets, both broad and narrow, combined with the overall advantages of ETFs, including high levels of flexibility and transparency at a low cost.