Sustainable ETFs for Sustainable Investors. More… It also covers top Zacks ranking alternative energy stocks such as Talen Energy Corporation.

Transcript & Links, Episode 139, October 4, 2024

Hello, Ron Robins here. Welcome to this podcast episode 139 published October 4, 2024, titled “Sustainable ETFs for Sustainable Investors. More…” It’s presented by Investing for the Soul. Investingforthesoul.com is your site for vital global ethical and sustainable investing mentoring, news, commentary, information, and resources.

Remember that you can find a full transcript and links to content – including stock symbols and bonus material – on this episode’s podcast page at investingforthesoul.com/podcasts.

Also, a reminder. I do not evaluate any of the stocks or funds mentioned in these podcasts, and I don’t receive any compensation from anyone covered in these podcasts. Furthermore, I will reveal any investments I have in the investments mentioned herein.

Additionally, quotes about individual companies are brief. Please go to this podcast’s webpage for links to the articles and more company and stock information.

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Best Sustainable ETFs for ESG Investors

For this podcast, I have three articles to cover. The first is titled Best Sustainable ETFs for ESG Investors. It’s by Sumedha and can be seen on sfctoday.com. Here’s some of what the author says about their picks.

“1. TCW Transform 500 ETF (VOTE)

Unlike traditional ETFs that exclude companies based on specific ESG criteria, the TCW Transform 500 ETF takes an inclusive approach, using shareholder engagement to encourage better corporate governance and sustainability practices. By including major companies and influencing their behavior, investors in this ETF can help drive long-term value creation in the US economy.

The ETF tracks the Morningstar US Large Cap Select TR USD Index, a market cap-weighted index that reflects the performance of the largest US companies.

2. Xtrackers MSCI USA Climate Action Equity ETF (USCA)

As the world increasingly moves toward sustainability, the Xtrackers MSCI USA Climate Action Equity ETF is positioned to capture investment opportunities aligned with this shift. The ETF tracks the MSCI USA Climate Action Index, which includes large- and mid-cap U.S. companies recognized as leaders in climate action within their respective sectors.

The ETF’s rigorous selection process evaluates companies based on their emissions intensity, climate risk management, and commitments to reducing carbon footprints…

For investors who want to capitalize on the long-term growth potential of the transition to a low-carbon economy, [this ETF] provides exposure to companies that are leading in this space.

3. iShares ESG Screened S&P 500 ETF (XVV)

The iShares ESG Screened S&P 500 ETF provides exposure to large-cap US equities while adhering to ESG criteria. This ETF tracks the S&P 500 Sustainability Screened Index, which excludes companies involved in controversial industries such as tobacco, coal, and weapons. Managed by BlackRock, a leader in sustainable investing, the fund aims to balance financial returns with a positive societal impact…

At an expense ratio of just 0.08%, iShares ESG Screened S&P 500 ETF is a cost-effective option for those who want to invest sustainably without significantly deviating from the performance of the traditional S&P 500 index.

4. Vanguard ESG US Stock ETF (ESGV)

The Vanguard ESG US Stock ETF is one of the most popular options for investors looking to combine broad market exposure with ESG principles. It tracks the FTSE US All Cap Choice Index, which includes large-, mid-, and small-cap U.S. companies that meet stringent ESG standards.

Companies involved in activities such as tobacco, alcohol, gambling, and fossil fuels are excluded… Launched in September 2018, the Vanguard ESG US Stock ETF has gained popularity for its low expense ratio of just 0.09%.

5. NYLI Candriam U.S. Large Cap Equity ETF (IQSU)

The NYLI Candriam U.S. Large Cap Equity ETF offers a passive investment approach with a focus on U.S. large- and mid-cap equities that meet specific ESG criteria. It tracks the NYLI Candriam U.S. Large Cap Equity Index, which leverages Candriam’s leading ESG research to provide a diversified portfolio across various sectors.

With an expense ratio of just 0.09%, the NYLI Candriam U.S. Large Cap Equity ETF stands out as a cost-effective, tax-sensitive investment option for those seeking to invest sustainably. The ETF has earned a Bronze rating from Morningstar, a testament to its strong management team and reliable investment process.

Its strategy focuses on high liquidity and volatility exposure, offering greater flexibility in managing the portfolio. For investors seeking a resilient core holding with a strong ESG focus, the NYLI Candriam U.S. Large Cap Equity ETF provides an excellent option.”

End quotes

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3 Alternative Energy Stocks to Buy

The second article is titled 3 Alternative Energy Stocks to Buy by Aparajita Dutta. Her work features regularly in these podcasts and is found on zacks.com. Here are some quotes from her article.

“1. Talen Energy Corporation (TLN)

Based in Houston, TX, the company owns and operates power infrastructure, principally in the United States. On Sept. 5, 2024, Talen Energy announced that its board of directors has approved the upsizing of its previously announced share repurchase program, increasing the remaining capacity to $1.25 billion through the fourth quarter of 2026. This reflects the company’s solid financial position. 

Talen Energy boasts a four-quarter average earnings surprise of 140.71%… Talen currently sports a Zacks Rank #1 (Strong Buy).

2. FuelCell Energy (FCEL)

Based in Danbury, CT, the company develops and markets ultra-clean power plants that generate electricity with up to twice the efficiency of conventional fossil fuel plants with virtually no air pollution and reduced greenhouse gas emissions. On Sept. 5, 2024, FuelCell Energy released its third-quarter fiscal 2024 results. Its generation revenues increased 22% year over year. As of July 31, 2024, its backlog increased approximately 12.6% to $1.20 billion. 

FuelCell Energy boasts a four-quarter average earnings surprise of 18.75%. The consensus estimate for the company’s 2025 sales is pegged at $2.29 billion, implying an improvement of 84.5% from the previous year’s estimated figure. The company currently carries a Zacks Rank #2 (Buy).

3. TXNM Energy (TXNM)

Based in Albuquerque, NM, TXNM is an energy holding company that delivers energy to homes and businesses across Texas and New Mexico. TXNM boasts a four-quarter average earnings surprise of 1.96%. The stock holds a long-term earnings growth rate of 2.5%. The company currently carries a Zacks Rank #2.”

End quotes.

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3 Sustainable Investing ETFs for Ethical Portfolios

The third article is also about sustainable ETFs. It’s titled 3 Sustainable Investing ETFs for Ethical Portfolios and by Abhishek Bhuyan appearing on stocknews.com. Here’s a brief quote from the article.

“Sustainable investing involves aligning investments with ethical and environmental values, focusing on companies that meet ESG (Environmental, Social, Governance) criteria. Large-cap blends are a good choice because they offer stability, diversification, and long-term growth potential. Companies with solid track records and ESG practices can provide strong returns while minimizing risk.

To that end, investors could look to invest in sustainable large-cap ETFs such as the iShares MSCI KLD 400 Social ETF (DSI – Get Rating), Vanguard ESG U.S. Stock ETF (ESGV – Get Rating), and iShares ESG Aware MSCI USA ETF (ESGU – Get Rating) for an ethical portfolio.”

End quote.

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Ending Comment

These are my top news stories with their stock and fund tips for this podcast “Sustainable ETFs for Sustainable Investors. More…”

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Now my next podcast will be October 18^th.

I’ll talk to you then!

Bye for now.

© 2024 Ron Robins, Investing for the Soul