I’ve got a confession to make.
Last week, I told you we just launched our new Ethical Investing course. It’s 100% free, packed full of video, investing insights and bonus research.
Click here to enrol in the Ethical Investing course.
If you enrol in our free course and get 60% (or better) on the final quiz, I’ll give you a $100 coupon code to use on a new Rask membership!
Anyhow, back to my confession…
Here’s something you might already know.
I own the BetaShares A200 ETF (ASX: A200) ETF in my portfolio.
(Many Rask readers have figured out you can always read the footer section of our emails or articles to see our disclosures).
For me, alongside the Vanguard Australian Shares ETF (ASX: VAS), A200 is a super-simple and low-cost way to get market exposure.
I can chuck $2,000 in the A200 ETF and, excluding brokerage fees, pay less than $15 per year for BetaShares to invest my money in shares like CSL Limited (ASX: CSL), National Australia Bank Ltd (ASX: NAB), etc. — and yes, I still get my fully franked dividends!
The thing is, I consider myself to be a ‘pretty ethical investor’ (don’t we all?).
For Rask Invest, we’ve never recommended a company directly operating in, or indirectly linked to, gambling, tobacco, armaments, cluster munitions, deforestation, or child exploitation.
I also avoid companies like Crown Resorts Ltd (ASX: CWN), which is involved in casinos; and Aristocrat Leisure Limited (ASX: ALL), a software company involved in digital casinos and pokie machines.
I don’t mind that people gamble. But I definitely don’t want to profit from addictions or vices. I simply don’t need to.
However, by owning the BetaShares A200 ETF (or if you own the Vanguard VAS ETF), investors like me are letting our portfolios be exposed to these companies and industries.
So, in the next few weeks, I’ll be carefully reviewing my personal holdings in these ETFs. There are many suitable ETFs and funds offering at least some ESG/sustainable/ethical overlay…
Tip #1: Avoid industries that don’t align with your values
Thanks to our research, plus my years of experience interviewing Australia’s best investors and corporate leaders, I know it pays to invest in sustainable businesses.
However, it wasn’t until our team really lifted the lid on ethical and ESG investing in Australia, for our free investing course, that I realised how much better the returns can be from investing responsibly.
The RIAA is an authority on ESG investing in Australasia.
In its 2020 Benchmark Report, the RIAA reported that across Aussie shares, international shares and multi-sector growth funds, fund managers with an ESG or ‘responsible’ focus noticeably outperformed their non-ESG peers.
Basically, it can pay dividends to invest in a way that also makes you feel good.
Tip #2: Find companies that delight
My second tip is not ESG related but business related.
As an investor, if you find a company that can delight its customers you should pay very close attention.
As discussed on last week’s episode of The Australian Investors Podcast, it’s no coincidence that companies with a product or service that’s 10x better or 10x cheaper than the competition often win — and win big.
9 factors for small cap investors | Podcast with Mark Tobin & Andrew Page
Companies like Afterpay Ltd (ASX: APT) or Xero Limited (ASX: XRO) are prime examples.
In fact, it’s the #1 reason I’ve owned Xero shares for years: accountants still rave about its product!
If you can identify these companies early, I believe that’s the hardest part of research done.
Of course, it must be a legitimate business — with non-promotional management, a rock-solid balance sheet and cold hard cash already coming in through the door. If it doesn’t already have those things, it’s a concept — not a sustainable company.
What we do at Rask is speak with customers, read countless product reviews, speak to or read what industry professionals are saying, etc.. The reality is, anyone can — and should — do this.
How to save $100 on Rask this weekend
As you already know, at Rask our mission is to get 10,000 Aussies or Kiwis enrolled into our free educational courses before June 30, 2021.
This makes us no money but it helps you, our community of investors, teach the people around you (kids, family, friends, colleagues, etc.) to spend their time and money better.
Having financial autonomy helps everyone lead fuller lives, with more optimism and far less stress.
To help us on our mission, you can enrol in any of the following free courses (see below).
Then, if you take part in our final course quiz and get 60% or better you’ll receive a $100 coupon code to use on our expert stock or ETF research. The quiz has unlimited retakes.
Here’s how simple it is:
- Enrol in the Ethical Investing, FIRE course or ETF Investor course on Rask Education
- Take the final quiz and score at least 60%
- Copy (or write down) the $100 coupon code to use on any new Rask membership
Quick note from Leonard the lawyer: The $100 offer is valid for new memberships and only one discount code can be applied at a time.
So, what are you waiting for?
If you enrol in our Ethical Investing course this weekend you’ll up-skill, discover exactly how to invest ethically (see my #1 tip, above) and get $100 off our premium services.
Here’s to investing better!
