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Showing posts from September, 2023

Environmental Social Governance, what is ESG?

Environmental Social Governance, what is ESG?  You've probably already come across the acronym ESG. If not, it's an acronym that refers to how companies across industries approach business.  Translated, the acronym stands for environmental and social stewardship.  It can be a way for you to learn significantly more about companies than they tell you about themselves on their websites or the packaging of the products you buy from them. There are whole specialist companies that monitor everything that, and especially how, companies do things. They then earn a rating for their "performance". It's their ESG score. Elon Musk fights ESG rules Recently, multi-billionaire and influential entrepreneur, Elon Musk himself has come to the media's attention. It just so happened that the electric car company he runs, Tesla, earned an unflattering ESG score. On Twitter, Musk was critical, noting that tobacco companies like Philip Morris have achieved higher ESG scores than T...

How to diversify your investments: think sectors!

Investors can gain exposure to vast investment opportunities through stock market sectors.   The only question is what form their investment will take.  The options are purchasing of individual stocks or buying specialized sector funds, such as exchange-traded funds (ETFs) or mutual funds that primarily hold stocks within a single sector.  Investors interested in exposure to all sectors can consider a broad-based mutual fund or ETF like the S&P 500 Trust ETF (SPY).   Who makes sure it’s all up to spec?    There are 11 stock market sectors, according to the Global Industry Classification Standard, or GICS, which is an industry taxonomy developed in 1999 by MSCI and Standard & Poor's.  The 11 stock market sectors are then sub-divided into 24 industry groups, 69 industries and 158 sub-industries into which all major public companies fit.  Annual reviews are conducted by S&P Dow Jones Indices and MSCI to ensure that the structure remains f...