Top ESG ETFs of the week: VLCO, Gold & Crypto Mining

This week VLCO, Gold Mining and Crypto Mining ETFs reach the top of the ladder as the top ESG ETFs based on performance. Below we explain why and how these ESG ETFs made the list.

VCLO, top ESG ETF performer of the week

Simplify Volt Cloud and Cybersecurity Disruption ETF (VCLO) was the top performing ESG ETF last week, gaining +7.11%. This is an actively managed thematic fund that holds disruptive companies in cloud and cybersecurity industries. These types of companies have usually low carbon footprint and good overall working environment and relatively high ESG credentials. Its recent performance could be attributed to its top holding Cloudflare (13.77%), which gained 24% between October 4th and 8th after they announced the launch several new products that are set to take on Amazon Web Services (AWS) cloud storage offering.

Gold Mining ETFs boosted on rising gold price

HANetf AuAg ESG Gold Mining UCITS ETF (ZSGO) and L&G Gold Mining UCITS ETF (AUCO) gained +6.58% and 5.32% on higher gold prices as global equity sell-offs sends investors to safe haven assets.  ZSGO follows a best-in-class ESG strategy, screening the mining universe for their ESG credentials, attributing a risk score based on their findings. Only the top 25 lowest ESG Risk companies are included within the index. AUCO, on the other hand, uses a filtering-by-exclusion strategy, filtering out all companies involved in controversial industries or activities.

Canadian ESG ETFs lifted by higher gold, oil and uranium prices

Canadian ESG ETFs Invesco S&P/TSX Composite ESG Index ETF (ESGC), iShares ESG MSCI Canada Index ETF (XESG), iShares ESG Advanced MSCI Canada Index ETF (XCSR) and Desjardins RI Canada - Low CO2 Index ETF (DRFC)  gained around 3% each. Canada a major oil, gold and uranium producing country has benefited from the rise in prices, triggering a positive market sentiment that lifted different industries and sectors last week, including ESG and non-ESG investments.

DRFC, the largest ETF among the group with CA $304 million in assets under management, invests in Canadian equities and employs a best-in-class ESG strategy by focusing on companies with lower carbon footprint than their industry peers.

DRFC top 5 holdings include CGI Group (6.86%), Bank of Montreal (4.39%), Great-West Lifeco Inc (3.90%), Cenovus Energy Inc (3.67%) and Royal Bank of Canada (3.42%).

The fund trades on the Toronto Stock Exchange (TSX) and generated +22.93% in returns year-to-date.

ESG friendly Crypto mining ETF lifted by Crypto uprise

Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (RIGZ) gained +6.25% on rising crypto prices, mainly Bitcoin and Ethereum, the two largest cryptocurrencies by market cap. The actively managed fund invests in ESG focused companies involved in the cryptocurrency mining industry, including crypto miners, crypto mining equipment manufacturers, semiconductor producers, blockchain experts and software providers among others. RIGZ top 5 holdings includes Hut 8 Mining (17.72%), Marathon Digital Holdings inc. (12.82%), Bitfarms Ltd. (10.95%), Samsung Electronics (4.88%) and CleanSpark Inc. (4.57%)

Since inception in July 2021, the fund has gained 48%.

Top 10 ESG ETFs of the Week: Uranium and Japan ETFs

• Simplify Volt Cloud and Cybersecurity Disruption ETF: +7.11%
• HANetf AuAg ESG Gold Mining UCITS ETF: +6.58%
• Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF: +6.25%
• L&G Gold Mining UCITS ETF: +5.32%
• iShares Jantzi Social Index ETF: +3.39%
• Xtrackers MSCI Europe Financials ESG Screened UCITS ETF: +3.22%
• Invesco S&P/TSX Composite ESG Index ETF: +3.04%
• iShares ESG MSCI Canada Index ETF: +3.03%
• iShares ESG Advanced MSCI Canada Index ETF: +2.96%
• Desjardins RI Canada - Low CO2 Index ETF: +2.94%

Keep reading:

• Top ETFs of the week: Crypto, Energy & Palladium
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• Retail ETFs: Do they deserve a spot in your portfolio?
• Top ESG ETFs of the month: Uranium & Japan ETFs

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