Although interest in sustainable investing is widespread, how you actually incorporate ESG strategies in each client’s portfolio depends on the goals they’re trying to achieve. Fortunately, advisors have many ways to add sustainability exposure to a portfolio. Here are four common client goals and how you might adjust their portfolios accordingly.
What’s a great way to learn about your clients’ ESG priorities and performance objectives? Ask them! Sign up for a questionnaire you can use to better understand your clients’ needs and have more productive conversations.
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Before investing, carefully consider the FlexShares investment objectives, risks, charges and expenses. This and other information is in the prospectus and a summary prospectus, copies of which may be obtained by visiting www.flexshares.com. Read the prospectus carefully before you invest.
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Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns. An ESG investment methodology that includes and excludes issuers and assigns weights to issuers by applying non-financial factors, such as ESG factors, such ESG investment methodology may underperform the broader equity market or other investment products that do or do not use ESG investment criteria. An ESG investment methodology will influence exposure to certain companies and sectors.
Currently, there is a lack of common industry standards relating to the development and application of ESG criteria, which may make it difficult to compare an ESG investment methodology with the investment strategies of other investment products or funds that integrate certain ESG criteria. The subjective value that investors may assign to certain types of ESG characteristics may differ substantially from that of an ESG investment methodology or a data provider.
Not all FlexShares ETFs have an ESG focus. For more information on which FlexShares ETFs have an ESG focus, please visit flexshares.com