The best socially responsible (SRI) ETFs

How do I invest in sustainable or socially responsible companies?

Socially responsible investing (SRI) is becoming more and more popular. The idea is, that ecologically and socially responsible management makes a company sustainable and ensures sustainable returns on investment.

There are several indices available to invest in social responsibility with ETFs. The major difference between the indices are the excluded industries. This Investment Guide will help you navigate among the peculiarities of SRI indices that vary substantially in their methodologies and SRI ETFs that track them. It will allow you to find the most suitable ETFs for you by ranking them according to your preferences.

0.12% p.a. - 0.41% p.a.
annual total expense ratio (TER) of socially responsible (SRI) ETFs for Europe
on socially responsible investing (SRI) for Europe, which are tracked by ETFs
on socially responsible investing (SRI) for Europe
The best indices for socially responsible (SRI) ETFs for Europe

The best socially responsible (SRI) ETF for Europe by 1-year fund return as of 31/05/19

All socially responsible (SRI) ETFs for Europe ranked by fund return

 

The largest socially responsible (SRI) ETF for Europe by fund size in EUR

All socially responsible (SRI) ETFs for Europe ranked by fund size

 

The cheapest socially responsible (SRI) ETF for Europe by total expense ratio

All socially responsible (SRI) ETFs for Europe ranked by total expense ratio

 
 

SRI indices compared

Regional focus of the most important SRI index families for ETFs

Regional focus of SRI ETFs

Source: justETF Research; As of: 20/04/2018

 

Excluded sectors of the most important SRI index families for ETFs

Excluded sectors of SRI ETFs

Source: justETF Research; As of: 20/04/2018

 

Performance of European SRI indices in comparison

 

Dow Jones Sustainability indices

Dow Jones Sustainability Indices are designed to measure the stock performance of the leading sustainable companies of their respective region, identified by RobecoSAM through an annual corporate sustainability assessment. The indices represent their respective portion of the global parent index. The index excludes companies that generate revenue from alcohol, tobacco, gambling, armaments and firearms, and/or adult entertainment.

 

Methodology of the Dow Jones Sustainability indices Factsheet Methodology

  • Reassessment takes place annually in September
  • Selection of stocks depends on RobecoSAM rating
  • Criteria is social, economic and ecological sustainability
  • Weighted by float-adjusted market capitalisation
  • Excluded sectors: Alcohol, tobacco, gambling, armaments & firearms, adult entertainment

Regional sub-indices of the Dow Jones Sustainability

Dow Jones Sustainability Eurozone ex Alcohol, Tobacco, Gambling and others
Dow Jones Sustainability World ex Alcohol, Tobacco, Gambling and others

 

MSCI ex Controversial Weapons indices

The MSCI Controversial Weapons indices are based on their respective regional parent index, and follow the same methodology. The MSCI ex Controversial Weapons Indices however exclude companies from the parent index that are involved with the production of cluster bombs, landmines, chemical and biological weapons and depleted uranium weapons. Constituent selection is based on data from MSCI ESG Research.

 

Methodology of the MSCI ex Controversial Weapons indices Factsheet Methodology

  • Based on their respective regional parent index
  • Weighted by float-adjusted market capitalisation
  • Excluded sectors: chemical/ biological weapons, cluster bombs, landmines, uranium weapons

Regional sub-indices of the MSCI ex Controversial Weapons

MSCI EMU ex Controversial Weapons
MSCI Emerging Markets ex Controversial Weapons
MSCI Europe Small Cap ex Controversial Weapons
MSCI Europe ex Controversial Weapons
MSCI Europe ex UK ex Controversial Weapons
MSCI Japan ex Controversial Weapons
MSCI Japan ex Controversial Weapons (EUR Hedged)
MSCI North America ex Controversial Weapons
MSCI Pacific ex Japan ex Controversial Weapons
MSCI World ex Controversial Weapons

 

MSCI SRI indices

MSCI SRI indices captures large and mid-cap stocks across the Developed Markets countries within their respective region. The indices are capitalisation weighted indices that provide exposure to companies with outstanding environmental, social and governance (ESG) ratings. Constituent selection is based on research provided by MSCI ESG Research. Companies, which generate revenue from adult entertainment, alcohol & tobacco, gambling, weaponry, nuclear energy, and genetically modified organisms, are excluded.

 

Methodology of the MSCI SRI indices

  • Rebalanced in February, May, August and November
  • Stocks are selected in a best-of-class way within different categories, concerning the social, economic and ecological sustainabilityg
  • Weighted by float-adjusted market capitalisation
  • Excluded sectors: adult entertainment, alcohol & tobacco, gambling, weaponry, nuclear energy, genetically modified organisms

Regional sub-indices of the MSCI SRI

MSCI ACWI SRI 5% Issuer Capped (EUR Hedged)
MSCI EMU SRI 5% Capped
MSCI Emerging Markets SRI
MSCI Emerging Markets SRI 5% Capped
MSCI Europe SRI
MSCI Japan SRI
MSCI Japan SRI (EUR Hedged)
MSCI Japan SRI 5% Capped
MSCI Japan SRI 5% Capped (EUR Hedged)
MSCI Pacific SRI 5% Capped
MSCI USA SRI
MSCI USA SRI (EUR Hedged)
MSCI USA SRI 5% Capped
MSCI USA SRI 5% Capped (EUR Hedged)
MSCI World SRI
MSCI World SRI 5% Capped

 

Solactive Sustainability indices

The Solactive Sustainability contains the largest companies, measured by free float market capitalisation, that hold the Oekom status “Prime”, and are not involved in abortion, alcohol, oil & coal, embryonic research, furs, gambling, military services of any kind, GMOs, nuclear power, pornography or tobacco. Furthermore, those companies must refrain from animal testing, business malpractice and controversial environmental practices, and they, and their suppliers/subcontractors have to respect labour and human rights.

 

Methodology of the Solactive Sustainability indices Methodology

  • Contains the largest companies, which hold the Oekom status “Prime”, and are not part of the excluded sectors
  • Weighted by float-adjusted market capitalisation
  • Contained companies and their suppliers satisfy high moral standards
  • Single stocks are capped at 10% weight
  • Excluded sectors: alcohol, oil & coal, embryonic research, furs, gambling, military services of any kind, GMOs, nuclear power, pornography, tobacco

Regional sub-indices of the Solactive Sustainability

Solactive Eurozone Sustainability

 
 

Socially responsible (SRI) ETFs for Europe in comparison

The most important factors at a glance

When choosing a socially responsible (SRI) ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all socially responsible (SRI) ETFs for Europe with details on size, cost, age, income, domicile and replication method ranked by fund size.

Compare all socially responsible (SRI) ETFs for Europe in detail
Compare all socially responsible (SRI) ETFs for Europe in a chart

Provider
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares MSCI Europe SRI UCITS ETFIE00B52VJ196 692 0.30% p.a. Accumulating Ireland Optimized sampling
BNP Paribas Easy Low Carbon 100 Europe UCITS ETFLU1377382368 597 0.30% p.a. Accumulating Luxembourg Full replication
UBS ETF (LU) MSCI EMU Socially Responsible UCITS ETF (EUR) A-disLU0629460675 575 0.28% p.a. Distributing Luxembourg Full replication
BNP Paribas Easy MSCI Europe SRI UCITS ETFLU1753045415 293 0.30% p.a. Distributing Luxembourg Full replication
iShares Dow Jones Eurozone Sustainability Screened UCITS ETF (DE)DE000A0F5UG3 199 0.41% p.a. Distributing Germany Full replication
BNP Paribas Easy MSCI EMU ex Controversial Weapons UCITS ETFLU1291098827 165 0.25% p.a. Accumulating Luxembourg Full replication
BNP Paribas Easy MSCI Europe Small Caps ex Controversial Weapons UCITS ETFLU1291101555 92 0.25% p.a. Accumulating Luxembourg Unfunded swap
BNP Paribas Easy MSCI Europe ex Controversial Weapons UCITS ETFLU1291099718 54 0.25% p.a. Accumulating Luxembourg Full replication
iShares MSCI EMU ESG Screened UCITS ETF EUR (Acc)IE00BFNM3B99 53 0.12% p.a. Accumulating Ireland Optimized sampling
iShares MSCI Europe ESG Screened UCITS ETF EUR (Acc)IE00BFNM3D14 47 0.12% p.a. Accumulating Ireland Optimized sampling
Amundi Index MSCI Europe SRI – UCITS ETF DR (C)LU1861137484 43 0.18% p.a. Accumulating Luxembourg Full replication
Invesco MSCI Europe ESG Leaders Catholic Principles UCITS ETF AIE00BG0NY640 38 0.30% p.a. Distributing Ireland Optimized sampling
Deka Oekom Euro Nachhaltigkeit UCITS ETFDE000ETFL474 32 0.40% p.a. Distributing Germany Full replication
Xtrackers ESG MSCI Europe UCITS ETF 1CIE00BFMNHK08 13 0.20% p.a. Accumulating Ireland Full replication
iShares MSCI EMU ESG Screened UCITS ETF EUR (Dist)IE00BFNM3C07 12 0.12% p.a. Distributing Ireland Optimized sampling
Lyxor MSCI EMU ESG Trend Leaders (DR) UCITS ETF - AccLU1792117340 6 0.20% p.a. Accumulating Luxembourg Full replication
iShares MSCI Europe ESG Screened UCITS ETF EUR (Dist)IE00BFNM3F38 5 0.12% p.a. Distributing Ireland Optimized sampling
BNP Paribas Easy MSCI Europe ex UK ex Controversial Weapons UCITS ETFLU1291100664 2 0.25% p.a. Accumulating Luxembourg Full replication
iShares MSCI Europe ESG Enhanced UCITS ETF EUR (Acc)IE00BHZPJ783 0 0.15% p.a. Accumulating Ireland Optimized sampling
iShares MSCI EMU ESG Enhanced UCITS ETF EUR (Acc)IE00BHZPJ015 0 0.15% p.a. Accumulating Ireland Optimized sampling

Source: justETF.com; As of 18/06/19

 

Return comparison of all socially responsible (SRI) ETFs for Europe

The table shows the returns of all socially responsible (SRI) ETFs for Europe in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.

ETF   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
BNP Paribas Easy Low Carbon 100 Europe UCITS ETF -4.80% 1.57% 6.54% 3.42% -
iShares MSCI Europe SRI UCITS ETF -4.08% 1.63% 5.57% 2.65% 18.46%
BNP Paribas Easy MSCI Europe SRI UCITS ETF -4.12% 1.56% 5.52% 2.64% -
Xtrackers ESG MSCI Europe UCITS ETF 1C -4.45% 1.12% 4.83% 1.29% -
BNP Paribas Easy MSCI Europe ex UK ex Controversial Weapons UCITS ETF -4.59% 1.38% 5.32% 0.44% 22.61%
UBS ETF (LU) MSCI EMU Socially Responsible UCITS ETF (EUR) A-dis -4.59% 2.33% 6.46% 0.29% 27.57%
iShares Dow Jones Eurozone Sustainability Screened UCITS ETF (DE) -5.15% 1.25% 5.36% -0.02% 24.63%
Lyxor MSCI EMU ESG Trend Leaders (DR) UCITS ETF - Acc -4.68% 1.44% 5.37% -0.34% -
BNP Paribas Easy MSCI Europe ex Controversial Weapons UCITS ETF -4.81% 0.90% 5.32% -0.49% 16.36%
BNP Paribas Easy MSCI EMU ex Controversial Weapons UCITS ETF -5.68% 0.53% 4.53% -3.57% 18.55%
Deka Oekom Euro Nachhaltigkeit UCITS ETF -7.30% -0.60% 2.71% -6.63% 13.48%
BNP Paribas Easy MSCI Europe Small Caps ex Controversial Weapons UCITS ETF -5.79% -0.17% 5.29% -8.04% 15.52%
Amundi Index MSCI Europe SRI – UCITS ETF DR (C) -4.08% 1.63% 5.63% - -
Invesco MSCI Europe ESG Leaders Catholic Principles UCITS ETF A -5.01% 0.62% - - -
iShares MSCI EMU ESG Enhanced UCITS ETF EUR (Acc) -5.51% - - - -
iShares MSCI EMU ESG Screened UCITS ETF EUR (Acc) -5.49% 1.18% 4.67% - -
iShares MSCI EMU ESG Screened UCITS ETF EUR (Dist) -5.49% 1.18% 4.67% - -
iShares MSCI Europe ESG Enhanced UCITS ETF EUR (Acc) -4.94% - - - -
iShares MSCI Europe ESG Screened UCITS ETF EUR (Acc) -4.90% 0.96% 5.01% - -
iShares MSCI Europe ESG Screened UCITS ETF EUR (Dist) -4.91% 0.97% 4.98% - -
ETF   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
Amundi Index MSCI Europe SRI – UCITS ETF DR (C) 14.33% - - - -
BNP Paribas Easy Low Carbon 100 Europe UCITS ETF 13.38% -7.60% - - -
UBS ETF (LU) MSCI EMU Socially Responsible UCITS ETF (EUR) A-dis 12.74% -8.14% 14.81% 10.24% 13.94%
BNP Paribas Easy MSCI Europe Small Caps ex Controversial Weapons UCITS ETF 12.50% -15.64% 19.17% - -
iShares Dow Jones Eurozone Sustainability Screened UCITS ETF (DE) 11.99% -10.37% 13.01% 7.23% 6.27%
BNP Paribas Easy MSCI Europe ex UK ex Controversial Weapons UCITS ETF 11.85% -11.16% 15.83% - -
Lyxor MSCI EMU ESG Trend Leaders (DR) UCITS ETF - Acc 11.73% - - - -
iShares MSCI Europe SRI UCITS ETF 11.70% -7.21% 11.14% 0.08% 8.46%
BNP Paribas Easy MSCI Europe SRI UCITS ETF 11.62% - - - -
iShares MSCI Europe ESG Screened UCITS ETF EUR (Dist) 11.51% - - - -
Xtrackers ESG MSCI Europe UCITS ETF 1C 11.50% - - - -
iShares MSCI Europe ESG Screened UCITS ETF EUR (Acc) 11.49% - - - -
BNP Paribas Easy MSCI Europe ex Controversial Weapons UCITS ETF 11.48% -10.56% 10.23% - -
iShares MSCI EMU ESG Screened UCITS ETF EUR (Acc) 11.21% - - - -
iShares MSCI EMU ESG Screened UCITS ETF EUR (Dist) 11.21% - - - -
BNP Paribas Easy MSCI EMU ex Controversial Weapons UCITS ETF 11.03% -12.97% 13.31% - -
Deka Oekom Euro Nachhaltigkeit UCITS ETF 10.97% -17.22% 10.93% 5.88% -
Invesco MSCI Europe ESG Leaders Catholic Principles UCITS ETF A - - - - -
iShares MSCI EMU ESG Enhanced UCITS ETF EUR (Acc) - - - - -
iShares MSCI Europe ESG Enhanced UCITS ETF EUR (Acc) - - - - -

Source: justETF.com; As of 31/05/19; Calculations in EUR including dividends