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Investment Strategy Highlight - IMPACTfolio Top 5 Thumbnail

Investment Strategy Highlight - IMPACTfolio Top 5

Investment Strategy Highlight

Name – IMPACTfolio Top 5

Description – The “Top 5” strategy will invest equally in 5 Exchange Traded Funds (ETFs) each quarter based on Relative Strength.  The shopping list of ETFs all have an IMPACT or ESG (Environmental, Social and Governance) mandate.  The strategy is tactical in nature, it can invest as much as 100% in equities (stocks) or shift 100% into fixed income (bonds).  The strategy is a good complement to our Core portfolios.

Current holdings (08/01/2018)

  • iShares MSCI USA ESG Optimized ETF (ESGU)
  • NuShares ESG Large-Cap Growth ETF (NULG)
  • Etho Climate Leadership U.S. ETF (ETHO)
  • Global X Conscious Companies ETF (KRMA)
  • SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX)

Quarterly Changes

One of the benefits of this strategy is its ability to adapt to changing markets over time.  With the changes this quarter the strategy has increased exposure to U.S. based companies.  The holdings last quarter were about 80% in U.S. stocks.  We can now see with the pie charts below the "Top 5" strategy has shifted to nearly 100% exposure to U.S. stocks.  We are not surprised by this shift, U.S. stocks are showing a higher level of relative strength when compared to International stocks this year.

Charts provided by Kwanti. https://kwanti.com/

Investing for IMPACT

The “Top 5” strategy helps support the United Nations Sustainable Development Goals.

United Nations Sustainable Development Logo

If you are interested in learning how you can turn your investment portfolio into a force for good by investing with IMPACT, please schedule a complimentary consultation.

Scott Arnold, CFP®, has been in the financial services industry since 1998.  He is a co-founder of IMPACTfolio, a wealth management firm that specializes in IMPACT investing and holistic financial planning for one flat-fee