Six Park’s sustainable portfolios help you invest in a more sustainable future.

 

Our sustainable portfolios feature:

Sustainable ETFs selected by Six Park’s expert Investment Advisory Committee

✔ Very low underlying costs from issuers

✔ High-quality global investment diversification

How does it work?

1
Getting started - How does it work? Six Park

Getting started

We start by understanding your risk profile and how long you plan to invest, then recommend an appropriate investment strategy for you. You can choose between our standard or sustainable portfolios.

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Investing - How does it work? Six Park

Investing

We set up your accounts and invest your money in carefully selected exchange-traded funds (ETFs). We provide ongoing management including reporting, reviews and rebalancing.

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Keeping track - How does it work? Six Park

Keeping track

Six Park makes it simple for you to keep track of your portfolio 24/7 from your computer or mobile device. We also offer support online or on the phone.

How we’ve crafted our sustainable portfolios

 

At Six Park, we understand that many investors want the option to choose more sustainable investments. Six Park’s Investment Advisory Committee has analysed the many exchange-traded funds (ETFs) available in Australia, and recommended what it believes are the best ETFs for investing in more sustainable companies while providing low-cost, high-quality diversification and transparency over their investment philosophies.

The sustainable ETFs that have been chosen for our portfolios are:

E200 by State Street (S&P/ASX200 ESG fund)

  • A sustainable alternative to Australia’s flagship benchmark – the S&P/ASX200 Index.
  • E200 is focused on Australian companies with strong ESG characteristics, while also removing companies interacting with tobacco and controversial weapons, and companies that generate 5% or more of their revenue from thermal coal.
  • E200 provides improved ESG characteristics while achieving a risk and return profile comparable to the S&P/ASX 200 Index.
  • E200’s ESG scoring is recognised as one of the most advanced methodologies, drawing upon 20 years of experience analysing sustainability’s impact on a company’s long-term value creation.
  • E200 will replace STW in Six Park’s sustainable portfolios.

VESG by Vanguard (Ethically Conscious International Shares Index)

  • VESG seeks to track the return of the FTSE Developed ex Australia Choice Index (with net dividends reinvested).
  • VESG provides unhedged exposure to many of the world’s largest companies listed in major developed countries, offering low-cost access to a broadly diversified range of securities.
  • VESG excludes companies with significant business activities involving fossil fuels, nuclear power, alcohol, tobacco, gambling, weapons, adult entertainment and a conduct related screen based on severe controversies.
  • VESG will replace VGS in our sustainable portfolios.

HETH by Betashares (Global Sustainability Leaders Currency Hedged)

  • HETH seeks to track the performance of an index (before fees and expenses) that includes a portfolio of large global stocks identified as “climate leaders” that have also passed screens to exclude companies with direct or significant indirect exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.
  • HETH invests in ex-Australia “climate leaders” (top 1/3rd in terms of carbon efficiency in their industry) that have also passed screens to exclude companies with significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations (gambling, pornography, tobacco, armaments, alcohol, junk foods, human rights violations, gender discrimination)
  • HETH combines positive climate leadership criteria with a broad set of ESG screens, offering investors a true-to-label ethical investment solution.
  • HETH is currency-hedged to the Australian dollar, which seeks to minimise the effect of currency fluctuations on returns.
  • HETH will replace VGAD in our sustainable portfolios.

Read more about the full range of our selected ETFs.

The process for setting up a sustainable portfolio is simple. Click “Get started” and take the online assessment. We’ll provide an investment recommendation and you tell us whether you’d like a standard or sustainable portfolio. Our minimum investment is $5,000 and fees start from as little as $9.95 a month.

 

Get started

Our sustainable portfolios use sustainability-oriented ETFs for exposure to Australian and international equities (both hedged and unhedged). They also omit exposure to emerging markets, as this is an asset class that is more likely to include companies with practices that are at odds with sustainable philosophies. 

Our sustainable portfolios retain the same growth:defensive asset class profiles as our essential portfolios – read more about our portfolios

Our Investment Advisory Committee spent considerable time evaluating the best sustainable ETFs for our portfolios. Among the selection criteria were three important principles:

  • The quality and level of diversification present in the sustainable ETF’s holdings;
  • The underlying costs associated with the ETF; and
  • The transparency of the ETF’s investment methodology and screening process.

Evaluating ETFs is always a complex process – this is especially true for sustainable ETFs. There are only a limited number of sustainability-oriented ETFs available on the Australian Stock Exchange, and many asset classes that Six Park uses in portfolios (such as infrastructure, real estate and emerging markets) have no sustainable offerings. (At least, not yet.) There are also no universally accepted selection criteria for sustainability and, as a result, screening and scoring methodologies differ considerably between funds.

Therefore, choosing the most appropriate ETFs inevitably involves a trade-off between adopting a more thorough screening/scoring process and preserving our preferred portfolio/risk exposures.

We understand that there are some ETFs available that might appear to adopt more extensive screening than those selected by Six Park’s Investment Advisory Committee. However, at this point in time, our Investment Advisory Committee believes this has the potential to introduce greater subjectivity (and potential bias) in the ETFs’ asset selection and result in asset compositions and risk exposures that are quite different to our current model portfolios. They may also result in higher costs and lower-than-optimal diversification. These are important considerations that we’ll continue to review over time.

FAIR is one of Australia’s largest sustainable ETF representing Australian equities. While State Street E200 ETF is a newcomer by comparison, our Investment Advisory Committee saw the following points as important attributes of E200:

  • Its approach to screening is well defined and less subjective/open to bias (and therefore arguably fits our passive investment approach better)
  • While it may not apply as many positive screens, it utilises a well-recognised international scoring methodology provided by S&P and RobecoSAM. This methodology is transparent, rigorous and has been developed and honed over 20+ years. The underlying scores are also derived using both company–provided data and publicly available information (where FAIR’s committee rely only on publicly available disclosures)
  • It achieves a risk/return profile which is comparable to the ASX200, making it an excellent ESG-tilted substitute
  • It is significantly less expensive than FAIR (at 13bps compared with 50bps)

By comparison, FAIR’s screening process results in a very different sector composition compared with the ASX200. In particular, it is strongly weighted to healthcare (29% vs 12%) and real estate (15% vs 6%) and lightly weighted to financials (25% vs 15%). As a result it offers quite a different risk/return to the ASX200 (and STW).

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