So you’ve decided you want to invest your money. You want it to work for you and help you achieve your goals in life rather than leave it sitting idle. But perhaps you want to do more than seek out good returns, and also invest with meaning? Just as many of us try to purchase consumer products that are aligned with our values and interests, in recent years more and more people have sought to invest in ways that are more consistent with their broader priorities and preferences.
For some people, this might mean wanting to invest in companies that are at the forefront of the clean energy transition, while others might want to invest in companies or industries that are seeking to transform people’s lives. For instance, you might feel passionate about healthcare and the potential for life-changing medical breakthroughs. Or you might believe that the biggest hope for the future lies in developing and harnessing technology. You might believe several of these things at once.
Exchange-traded funds – a solution to themed investments
This is where exchange-traded funds (ETFs) can come in. ETFs are diversified as they are typically made up of dozens of different investments, so they’re lower risk than buying shares in individual companies. You’ll know what’s in them and they can be traded like ordinary stocks, meaning they’re easy to buy and sell.
Whatever your values or interests are, Monzo, the digital bank, offers a range of ETFs that might well align with them – from technology and robotics to healthcare and clean energy. You can add these ETFs easily to a Stocks and Shares ISA in the bank’s app.
Let’s start with Monzo’s Clean Energy ETF (its full name is the iShares Global Clean Energy Transition fund). It invests in companies working in areas such as solar power, windfarms and mining the minerals used to make rechargeable batteries.
For healthcare innovation enthusiasts, the Healthcare Innovation ETF does exactly what it says and invests in companies developing new treatments, medicines and breakthroughs to improve the future of healthcare. If you believe that technology has the potential to revolutionise the way we live, the Automation and Robotics ETF is one to consider as it primarily invests in companies developing new technologies, such as Al. The Metaverse ETF also invests in companies in the digital space across VR, gaming, online shopping and more – potentially of interest to gamers and early adopters.
If you’re interested in technology and digital currencies, Monzo also has a Tech Focused fund, which invests in some of the world’s biggest tech companies, and a Blockchain Creators fund, which invests in companies developing blockchain and cryptocurrency technologies.
Geographic funds focus on certain countries and regions
Beyond this, Monzo also offers five geographic funds that allow you to tailor your investments to certain countries and regions. These are British companies, European companies, US companies, global companies and emerging markets.
These funds allow you to focus on certain sectors or parts of the world that reflect your interests. Using investments to express patriotic support is an idea that is gaining ground in the world of pensions. Governments in the UK, Germany, the Netherlands and Canada have all been exploring ways of increasing the proportion of people’s pension pots invested in domestic companies. Their aim is to help kickstart domestic economic growth.
Of course, there is no reason to restrict yourself to one ETF. You might decide that you like clean energy but are also interested in investing in European companies. Or healthcare and emerging markets. The ETFs offered by Monzo are designed to make it easy for you to mix and match and expand your money’s reach and impact as your confidence and interest in investing grows.
To find out more about how Monzo can help you invest, visit monzo.com/investments
Disclaimer:
The value of your investments could go up or down and you could get back less than you put in.
These funds are based overseas and aren’t subject to UK sustainable investment labelling and disclosure requirements. For more information, see the FCA’s website.
You need a Monzo current account to use Monzo Investments. UK residents, 18+, Ts&Cs apply. This guide does not constitute financial advice.
