Hello everyone. I'm looking to simplify the funds in my IRA to focus on index ETF's similar to a three/four fund portfolio total stock market philosophy. However, I'd like to remove companies that hold oil, gas, and coal reserves. I have a few selected that I wanted to get people's advice on if they make sense as diversified ETF's that would approximate Vanguard's total stock ETF's investing idea. There aren't many indices I've found that match this idea completely, but a few have started in the past few years. Primarily, in the US I'm looking at the SPYX index, which is the S&P 500 minus fossil fuel companies, as well as the ECLI index which is a bit different. ECLI selects companies weighted as "climate leaders" who are lower than average emitters and polluters.Internationally, I'm looking at combining two funds that focus on international developed markets and emerging markets, tracking MSCI indices the focus on low carbon companies.
Please note, I'm not interested in engaging about the merits of picking fossil free funds over the Vanguard funds. This is a decision I've made as a millennial concerned about my future, both for personal and financial reasons. If you're just here to criticize that decision, please just don't comment on this thread.
I'm also aware that these funds also invest in utilities and other industries invested in the fossil fuel industry. Removing them completely has proved difficult, so I'm settling on the best approximate I can find, which resulted in these fund selections.
I'm following the general breakdown of age in bonds, 60% US allocation/40% International. Here are the funds I think match what I'm trying to do most closely.
US Funds (60% of total stock allocation)
ETHO - 50%
SPYX - 50%
International Funds (40% of total stock allocation)
EFAX - ?% Developed countries (excluding US)
EEMX- ?% Emerging markets
So, a few questions.
- First off, do these funds make sense for what I'm trying to accomplish? (A well diversified, simplified index fund portfolio that removes an emphasis on fossil fuel investments, specifically removing fossil fuel reserves.)
- Second, does a 50/50 split of ETHO and SPYX for the US stocks make sense?
- Third, what allocation of developed and emerging markets would you recommend for the international funds?
- Fourth, would you have recommendation for any other funds that may better accomplish my goals?
Thanks in advance for any responses!
Submitted December 28, 2018 at 12:04PM by patronus215 http://bit.ly/2Tibdw0
