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How are the ETFs chosen to my Grünfin portfolio?
How are the ETFs chosen to my Grünfin portfolio?

Read below to see our list of criteria for choosing the ETFs

Vaiki Randala avatar
Written by Vaiki Randala
Updated over 11 months ago

🌱 We believe in a long-term, low-cost, well-diversified, and values-based investment strategy. We’ve chosen to build our client portfolios from the world’s best sustainability oriented Exchange-Traded Funds (ETFs). We view investments in the major market indices through the lens of Environmental Social and Governance (ESG) and the UN Sustainable Development Goals (SDG).

We carefully choose ETFs that need to satisfy our criteria in the following areas:


🍃 Sustainable Finance Disclosure Regulation SFDR Article 8 and 9 - At Grünfin, we entirely focus on sustainability and choose only Article 8 and 9 funds, of course preferring Article 9 where these rank high also based on and in combination with our other investment principles.
🍃 Preferably Morningstar Sustainability Rating of 4 or 5 and MSCI Sustainability Rating of A or higher - We rely on more than one objective, global third party to rate our funds.
🍃 Emissions in tons of CO2 equivalents per million USD turnover - Healing the planet requires all major corporations to reduce their carbon emissions. The lower their CO2 footprint the better!
🍃 Green vs brown revenue - Green revenue (e.g. solar energy) is good, brown revenue (e.g. oil) is bad.
🍃 % of women on board - Corporate boards make key decisions like setting a company's strategy. Since half of the world is women, we aim for funds that are closest to this representation.
🍃 % board independence - Corporate boards should be independent from a company's management team so that they can keep management accountable for the success of the company.

🍃 Global rank - We aim to offer you highly-ranked funds within the global universe of those covered by the ratings provider MSCI.
🍃 Not being complicit in human rights abuses - We want for you to own funds with 0% exposure to companies facing very severe controversies on human rights.
🍃 Specific exclusion of controversial weapons and tobacco companies - We screen out funds exposed to companies involved in landmines, chemical and biological weapons. We also exclude tobacco producers.

🍃 Low fees - Imagine the trading fees your bank would charge if you bought 3.400 positions! The fees would surely sum up to thousands of euros. Whereas in the case of our ETFs, the average annualized cost is 0.22% of the amount you invest, yet you are still exposed to up to 3.400 positions.
🍃 Passively managed ETFs or index funds - ETFs passively track an index, whereas actively-managed funds continuously decide which stocks to buy and sell. Turns out active management funds are really bad at selecting stocks. Only 6% of US active funds outperformed their passive index over the last 20 years.
🍃 Euro denominated - We only buy funds in EUR so that you don't have to worry about sending us different currencies.
🍃 Non-dividend distributing - At Grünfin we only invest in ETFs that don’t distribute dividends, to reduce the risk of triggering a taxable event for you. The companies inside the ETF still pay dividends which are credited to your position, but are automatically reinvested inside your ETF holding.
🍃 Fund’s liquidity: ETFs can be purchased or sold on a stock exchange the same way that a regular stock can with immediate liquidity.

Match your money with your values, and join our exciting journey to a more sustainable world!


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