3 ms·

I've got no idea about finances and would like to invest a meaningful part of my money in ETFs. Because I'm so clueless I assume I cannot really go wrong with a

I've got no idea about finances and would like to invest a meaningful part of my money in ETFs. Because I'm so clueless I assume I cannot really go wrong with a ETF that is tracking the MSCI Developed World Index. My problem: I really really really hate Nestlé and don't want to invest even a single penny in them. What can I do? I assume they're in the included in the index. There are ESG-weighted alternatives, but Nestlé managed to get quite good ESG ratings, so I presume they're included there as well.

addaon 2y ago
If it's worth it to you, tell your investment manager that you want to track MSCI Developed World minus Nestlé. You'll get charged a fee for a manually-managed brokerage compared to just dumping everything into an ETF, but this type of detailed preference is literally what active investment management is for.
beezlebroxxxxxx 2y ago
If you have enough money for it to be worthwhile, you can essentially approach a financial advisor with exactly your needs and they will manage your money to ignore Nestlé (though check their actual qualifications and whether they're a fiduciary). The pro of this approach: you don't have to think about or manage that task. The cons: you'll need enough money for that to be worthwhile, you might not see as good a return as you would simply parking your money in an ETF, you will likely face higher fees than normal for active management. You could save money by actively managing your investments yourself, but that would be quite time consuming and generally requires you to have more upfront capital to invest.
alecco 2y ago
All the major ETFs are gamed. Remember the scandal a couple of years ago when Exxon was considered green and major banks were considered ethical. BlackRock, Vanguard, State Street, etc. They are all the same.
namdnay 2y ago
Nestle is about 0.5% of the MSCI World, the simplest is probably to buy 0.5% by value of Nestle shorts on the side?

addaon 2y ago

If it's worth it to you, tell your investment manager that you want to track MSCI Developed World minus Nestlé. You'll get charged a fee for a manually-managed brokerage compared to just dumping everything into an ETF, but this type of detailed preference is literally what active investment management is for.

beezlebroxxxxxx 2y ago

If you have enough money for it to be worthwhile, you can essentially approach a financial advisor with exactly your needs and they will manage your money to ignore Nestlé (though check their actual qualifications and whether they're a fiduciary). The pro of this approach: you don't have to think about or manage that task. The cons: you'll need enough money for that to be worthwhile, you might not see as good a return as you would simply parking your money in an ETF, you will likely face higher fees than normal for active management. You could save money by actively managing your investments yourself, but that would be quite time consuming and generally requires you to have more upfront capital to invest.

alecco 2y ago

All the major ETFs are gamed. Remember the scandal a couple of years ago when Exxon was considered green and major banks were considered ethical. BlackRock, Vanguard, State Street, etc. They are all the same.

namdnay 2y ago

Nestle is about 0.5% of the MSCI World, the simplest is probably to buy 0.5% by value of Nestle shorts on the side?