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Are you ready to invest but want to ensure your money is supporting a more sustainable future? Look no further. The BMO Clean Energy ETF is the perfect way to align your values with your investments.
But first, here is a quick rundown for the ETF newbies out there. Use our table of contents to skip ahead if you already have some ETF knowledge.
WHAT IS AN ETF
- ETF stands for Exchange Traded Funds
- They let you invest your money into an entire industry or sector with a single investment
- ETFs allow people to invest in what they are passionate about because each fund invests into very specific mega trends (i.e. clean energy, genomics, next gen internet)
- For example, if you care about sustainability, you can choose to invest solely into clean energy companies with the BMO Clean Energy ETF
HOW DOES AN ETF WORK
- An ETF trades on an exchange, just like a stock
- The price of an ETF share will change throughout the trading day as the shares are bought and sold on the market
SO, WHAT IS THE BMO CLEAN ENERGY ETF
- The BMO Clean Energy Index ETF (ticker: ZCLN) captures the clean energy “mega trend” by investing in companies that are involved in clean energy related businesses, such as technology and equipment
- It is a GREAT option for anyone who values having a cleaner earth for future generations and wants their investments to align with that mission
WHY A BMO CLEAN ENERGY ETF OVER ANOTHER FINANCIAL INSTITUTION
- They are one of Canada’s leading ETF providers for over 12 years
- BMO ETFs can be bought through any self-directed online platform
- BMO ETFs are designed to stay ahead of market trends
OVERALL BENEFITS OF INVESTING IN AN ETF
- ETFs are lower risk than stocks. Stocks focus on one company, whereas an ETF is diversified
- ETFs are generally a more tax efficient structure for investors, because ETFs can create and redeem units without it being a taxable event
- You can invest in an entire sector that you are passionate about
- ETFs have low management and commission fees
- ETFs can be purchased in small amounts so almost anyone can participate
We have always been hesitant to start investing, because the thought of not knowing what our money is funding and supporting made us feel a little uneasy. Fortunately, with the BMO Clean Energy ETF, we now have the transparency we have always been looking for. The fact that our money can be invested in companies that share our mission for a greener future is really exciting for us.
We also like that ETFs help you diversify and spread out the risk of any one company underperforming. Overall, we feel ETFs are a great place for us to begin investing because they allow us to start with a small investment while still giving us the freedom to increase our contributions if and when we want to. If you want to learn more about the BMO Clean Energy ETF, head here.
This article has been sponsored by BMO Canada
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If you’re interested in sustainability, you might also be interested in learning about our zero waste travel tips.