Robo-adviser Stockspot's sustainable investing option has attracted close to 20% of new client inflows since launching in July.
"We're pleased to see such positive feedback and uptake of our sustainable portfolios by new and existing clients," said Sarah King, head of advice and client care at Stockspot. "The impact of the January bushfires and the coronavirus has accelerated the momentum of investors allocating their money in a way that aligns with their values and ethics.
"There has been a big focus on renewables, which our sustainable portfolios include, while screening out companies that have exposure to fossil fuels."
As an online investment adviser, Stockspot's Sustainable Portfolios include a suite of sustainability focused ETFs including the BetaShares Australian Sustainability Leaders ETF (FAIR), BetaShares Global Sustainability Leaders ETF (ETHI) and VanEck Vectors MSCI International Sustainable Equity ETF (ESGI). The weighted average ETF fees for the Sustainable Portfolios ranges from 0.31% - 0.43% pa.?
Stockspot's goal in creating the sustainable investing portfolio was to create an option that was "environmentally friendly," while also incorporating the United Nations Sustainable Development Goals (SDGs).
In addition to screening out fossil fuels, the ETFs also screen out gas pipelines, gambling, adult entertainment, weapons, alcohol, tobacco, animal testing, detention centres, nuclear energy, junk food and companies embroiled in human rights controversies.
The portfolios also use positive screens to include companies that "are leading in sustainable activities (such as renewable energy, recycling, and energy efficient transport) and adapting a greener world are included."
The Sustainable Portfolios also have an exposure to gold, which is well-known as a defensive asset and is less carbon intensive than other commodities.
The sustainable portfolio option has seen a broad take-up across demographics, King noted.
"We're seeing a wide range of clients take up the Sustainable Portfolios across age and gender demographics. We are seeing particular interest in our younger clients (those aged between 25-40) who are looking to grow their wealth and meet investment objectives such as buying their first home.
"Mum and dads are also choosing the sustainable option for their kids accounts, which Stockspot doesn't charge any management fees on for portfolios under $10,000. Finally many SMSFs are looking for ways to also contribute to a more sustainable future, by aligning their investment strategy to incorporate this".
The minimum amount to start investing with Stockspot is $2,000. Stockspot uses technology and automation to deliver low cost investment portfolios and financial advice to clients, helping them grow their wealth and reach their financial goals.?