Invest with your values

Are you looking for a way to invest your money that is in line with your personal values? If so, you may want to consider the iShares Jantzi Social Index ETF.

Invest in line with your personal values

RBC Canadian Vision Equity Fund (Fund code: RBF302)

Over the past decade, the RBC Canadian Vision Equity Fund’s compound annual growth rate has been in the third quartile of the Canadian equity category, and more recent performances have been underwhelming. It’s time for a change and luckily, we have just the replacement: the iShares Jantzi Social Index ETF.

The Jantzi ETF has outperformed the RBC Vision fund in the Canadian equity category and it also comes with a low management expense ratio of 0.55 per cent. So if you’re looking for a new fund with a solid track record, the Jantzi ETF is the one for you.

The RBC Vision fund has been on a downward trajectory since 2021, when it only managed to make it to the top half of the Canadian equity category in four of the nine calendar years. Comparatively, the Jantzi ETF has consistently performed above average and provides a great option for those looking for a fresh start.

Ultimately, the RBC Vision fund just wasn’t cutting it and it’s time to take a new, more successful direction. With the Jantzi ETF, you can expect above-average performance, as well as a low management expense ratio. If you’re looking for a new fund to invest in, the Jantzi ETF is a great choice.

iShares Jantzi Social Index ETF (TSX—XEN)

The iShares Jantzi Social Index exchange-traded fund has been added to the Canadian Ethical Funds category in our Mutual Fund Planning Guide and is suitable for those looking for a conservative ESG (environmental, social, and governance) equity investment.

Not only does this fund provide exposure to Canadian companies that meet a broad set of ESG criteria, but it has also generally performed better than its peers in the Canadian equity space. Read on to learn more about this fund and how it might fit into your portfolio.

What is the iShares Jantzi Social Index ETF?

The iShares Jantzi Social Index ETF seeks to track the performance of the Jantzi Social Index, or JSI, a socially screened and market capitalization-weighted common stock index modeled on the S&P/TSX 60. The index consists of 50 Canadian companies that have passed a broad set of ESG criteria.

Morningstar Sustainalytics has developed a rating framework for the JSI that calls
for an in-depth examination of a company’s historical performance in the areas of aboriginal relations, community involvement, corporate governance, employee relations, the environment, and human rights. In addition, companies with significant involvement in nuclear power, tobacco, and weapons-related contracting are excluded from the index.

Performance

The fund has, on average, performed in the second quartile of the category in each of the past one, three, five, and 10-year periods. Furthermore, it has performed in the top half of the category in five of the nine years ended Dec. 31, 2021.

Although volatility has been above average in the past three years, its industry sector allocations are generally similar to those of the S&P/TSX 60 Index, albeit with a heavier weighting in communications and consumer-discretionary stocks and less exposure to financials.

The fund’s top holdings include TD Bank, Royal Bank, Canadian National Railway, Bank of Montreal, Canadian Natural Resources (oil and gas), Shopify Inc. (e-commerce), Suncor Energy, BCE Inc., Telus, and Sun Life Financial (life insurance).

Distributions and management fees

The fund paid distributions in the last 12 months and has a management expense ratio of 0.55 per cent, which is lower than RBC Vision’s 1.88 per cent.

If you’re looking for a way to invest with your values, the iShares Jantzi Social Index ETF is worth considering. It provides exposure to Canadian companies that meet a broad set of ESG criteria and has generally performed better than its peers in the Canadian equity space. Plus, the fund pays distributions and has a low management fee.

This is an edited version of an article that was originally published for subscribers in the January 20, 2023 issue of Money Reporter. You can profit from the award-winning advice subscribers receive regularly in Money Reporter.

Money Reporter, MPL Communications Inc.
133 Richmond St. W., Toronto, On, M5H 3M8, 1-800-804-8846