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

 

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 selected 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.

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 standard, Essential portfolios – read more about our portfolios.

Please note that we are not providing you with any advice in relation to whether sustainable investing is appropriate for you. Before making a decision to invest in our more sustainable portfolios, you should carefully examine the disclosure provided by each ETF issuer (via the link set out below for each ETF) in relation to the sustainable investment screening criteria which is used for that ETF.

We do not set our own sustainable investment screening criteria. Rather, the issuer of each ETF adopts their own sustainable investment screens, which are likely to differ between ETFs. The sustainable investment screens might also not cover particular environmental, social or governance matters that are important to you.

 

 

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How it works

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Getting started - How does it work? Six Park

Take the free assessment

Take our short online assessment so we can understand your investment goals and how long you plan to invest. We will then recommend an appropriate portfolio for you. You can then choose to take on less/more risk and between our standard or sustainable portfolios.

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Investing - How does it work? Six Park

Fund your account

We set up your accounts, including a cash management and brokerage account. Add money to your cash management account, and when your balance is $2,000 or more, we’ll invest your money in carefully selected exchange-traded funds (ETFs).

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Keeping track - How does it work? Six Park

Grow & track

Grow your investment by regularly adding money to your account, and we’ll provide regular rebalancing, reporting and reviews, which keeps your investments on track and gives you insight into how your investments are performing.

The process of setting up a sustainable portfolio is simple. “Get started” and take the online assessment. We’ll provide an investment recommendation and you tell us whether you’d prefer a standard or sustainable portfolio. Simple.

Our minimum investment is $2,000 and fees start from as little as $6.25 a month.

 

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Our selected sustainable ETFs Australia – ETF Comparison

 

Sustainably Oriented Australian Shares

IESG is used for exposure to Australian shares in Six Park’s sustainable portfolios.

ETF
iShares Core MSCI Australia ESG Leaders ETF
Ticker
IESG
Focus
Exposure to ASX-listed companies meeting a variety of sustainability criteria, while maintaining similar overall industry group weights as the S&P/ASX 200 Index.
Examples of top holdings
CBA, CSL, Wesfarmers, ANZ, Macquarie Group, Transurban, Sonic Healthcare, Telstra
Why we have selected this ETF for Sustainably Oriented Australian Shares

  • IESG provides strong sustainable characteristics while achieving a risk and return profile comparable to the ASX 200 index.
  • Blackrock iShares launched IESG in June 2021. IESG aims to provide investors with the performance of the MSCI Australia IMI Custom ESG Leaders Index, before fees and expenses. Its objective is to provide exposure to large, mid and small-cap segments of the Australian market with better sustainability credentials relative to their sector peers.
  • IESG offers a comprehensive ESG screening process as well as low management costs. While still relatively small with a short trading history, the fund is growing rapidly.
  • At a minimum, IESG endeavours to screen out companies with involvement in controversial weapons, UN Global Compact violators, nuclear weapons, thermal coal, tobacco, civilian firearms and oil sands.
  • It has strong sustainability criteria – companies must have MSCI ESG rating of BB or higher, and an MSCI ESG controversies score above 3 rating from MSCI. Screens are then applied for involvement in fossil fuels, weapons, firearms, tobacco, alcohol, gambling, nuclear power, oil sands, thermal coal power, adult entertainment and UN global compact violations. Eligible companies are then ranked on ESG scores and market cap until a target of 50% of cumulative free float market cap is reached, with individual stocks capped at 10%.
  • Highly credentialled issuer.

IESG replaces STW in Six Park’s sustainable portfolios.

Sustainably Oriented International Shares (Unhedged)

VESG is used for exposure to unhedged international shares in Six Park’s sustainable portfolios.

ETF
Vanguard Ethically Conscious International Shares Index ETF
Ticker
VESG
Focus
Exposure to more than 1,500 of the world’s largest companies listed in major developed countries (exc. Australia) that excludes companies that do not rank highly on a variety of sustainability/ESG criteria.
Examples of top holdings
Apple, Microsoft, Amazon, Facebook, Alphabet, Tesla, Visa, Nestle, Proctor & Gamble, Nvidia
Why we have selected this ETF for Unhedged Sustainably Oriented International Shares

  • 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 replaces VGS in our sustainable portfolios.

Sustainably Oriented International Shares (Hedged)

IHWL is used for exposure to unhedged international shares in Six Park’s sustainable portfolios.

ETF
iShares Core MSCI World ex Australia ESG Leaders (AUD Hedged) ETF
Ticker
IHWL
Focus
Hedged exposure to more than 700 of the world’s largest companies in major developed countries (exc. Australia) that rank highly as sustainability/climate leaders.
Examples of top holdings
Apple, Microsoft, Alphabet, Nvidia, Tesla, Home Depot
Why we have selected this ETF for Unhedged Sustainably Oriented International Shares 

  • IHWL aims to provide investors with the performance of the MSCI World Ex Australia Custom ESG Leaders Index 100% Hedged to AUD, before fees and expenses. The index is designed to measure the AUD hedged performance of global, developed market large and mid-capitalisation companies with better sustainability credentials relative to their sector peers.
  • IHWL has a low underlying cost (0.14%) and a strong ESG rating from MSCI (AA). It also offers significant diversification of more than 700 stocks.
  • IHWL is currency-hedged to the Australian dollar, which seeks to minimise the effect of currency fluctuations on returns.
  • At a minimum, IHWL endeavours to screen out companies with involvement in controversial weapons, UN Global Compact violators, nuclear weapons, thermal coal, tobacco, civilian firearms and oil sands.
  • It has strong sustainability criteria – companies must have MSCI ESG rating of BB or higher, and an MSCI ESG controversies score above 3 rating from MSCI. Screens are then applied for involvement in fossil fuels, weapons, firearms, tobacco, alcohol, gambling, nuclear power, oil sands, thermal coal power, adult entertainment and UN global compact violations. Eligible companies are then ranked on ESG scores and market cap until a target of 50% of cumulative free float market cap is reached, with individual stocks capped at 10%.

IHWL replaces VGAD in our sustainable portfolios.

 

You should carefully consider the sustainability characteristics set out on the ETF issuer’s website (via the link above) to see whether it addresses particular environmental, social or governance matters that are important to you.

Read more about the full range of our selected ETFs.

 

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