Happy Kikky
ETF Overview
SPDR S&P 500 ESG ETF (NYSEARCA:EFIV) invests in a portfolio of stocks from the S&P 500 index that are screened for ESG criteria. The fund’s expense ratio of 0.10% is quite reasonable, only slightly higher than the
EFIV: A Strong ESG Alternative With Comparable Performance To The S&P 500
Summary
- EFIV invests in S&P 500 stocks screened for ESG criteria, with a reasonable expense ratio of 0.10%, slightly higher than Vanguard ESG US Stock ETF.
- The ETF has outperformed the S&P 500 since its inception in 2020, driven by higher exposure to large-cap tech stocks like Microsoft, Apple, and Nvidia.
- EFIV's future performance will likely be comparable to the S&P 500, though it may underperform in a lower rate environment favoring smaller-cap tech stocks.
- EFIV offers investors an option to prioritize ESG principles and at the same time deliver comparable or better return to the S&P 500 index.
I am a value focused investor. Stocks rise and fall for many different reasons that we often cannot predict. Eventually, it is those companies with a wide moat and the ability to generate cash flow that prevail. Therefore, my investment focus is to find value stocks that are able to generate cash flow, with sustainable dividends and provide growth over time. I focus my attention on analyzing large-capped dividend growth stocks, REITs and ETFs. I aim at providing a quarterly update and insights on stocks I follow. Please feel free to browse the articles that I wrote and provide any comments.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of MSFT, AAPL, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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