Investing with Compassion: What is the U.S. Vegan Climate ETF (VEGN)?

If you\’re looking for a way to invest your money without compromising your ethical values, the U.S. Vegan Climate ETF (VEGN) might be something to consider. This exchange-traded fund is designed for people who care about animal welfare, the environment, and climate change, offering an investment vehicle that aligns with those principles. But how exactly does it work, and why is it so unique?

What is VEGN?

The U.S. Vegan Climate ETF is a fund that invests in companies that meet strict criteria related to animal welfare and environmental sustainability. This ETF, launched by Beyond Investing, excludes companies involved in industries like animal agriculture, animal testing, and fossil fuels. It also avoids companies that contribute to deforestation or harm to the climate, making it a popular choice for environmentally conscious investors.

How Does VEGN Select Companies?

VEGN tracks the Beyond Investing U.S. Vegan Climate Index, which is a filtered version of the Solactive U.S. Large Cap Index. This index includes companies from major industries like technology, healthcare, and finance, but screens out companies that engage in activities harmful to animals and the environment. The fund\’s top holdings include well-known companies such as Microsoft, Apple, and Tesla, all of which are considered more ethical according to VEGN’s criteria.

Why Should You Consider VEGN?

For many people, the appeal of VEGN lies in its ethical foundation. This ETF allows you to invest in large, profitable companies while maintaining a focus on cruelty-free and environmentally responsible business practices. VEGN offers an opportunity to support a better future by investing in companies that are not contributing to animal suffering or environmental damage.

Moreover, VEGN has consistently outperformed the S&P500 Index since inception on September 10, 2019. On an annualized basis, VEGN is up 15.51% (on Market Price) since inception, versus the S&P500 which is up 15.30% in the same period, demonstrating that over the long-term it may be possible for a low carbon, cruelty-free, environmentally-friendly and sustainable index ETF to provide similar returns to the broad market while not compromising on an ethical and principled stance.

Is There a Catch?

Like many socially responsible funds, VEGN comes with slightly higher fees. Its expense ratio is 0.60%, which is higher than the average cost of 0.39% for similar funds. However, for those who prioritize ethical investing, the cost might be worth it to align their portfolios with their values.

Ultimately, VEGN is more than just an investment fund—it\’s a way to promote positive change through finance. If you\’re passionate about animal rights and the environment, this could be an appealing option to grow your wealth while sticking to your principles.