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Conservative / UK & USA / ESG model portfolio
This master portfolio is for conservative UK investors (those who want to minimise the risk of falls in value, and who are prepared to forego higher returns as a consequence), wanting to invest in a diversified portfolio across the UK & USA markets, who want to invest in ESG investments only.
This investment master portfolio contains 4 ETFs, and a healthy cash buffer:
|ETF||Weighting||Annual yield, %||Annual expenses, %|
|UKSR: UBS MSCI UK IMI Socially Responsible Equities ETF||15%||5%||0.28%|
|SUUS: iShares MSCI USA SRI ETF||15%||4%||0.20%|
|VUTY: Vanguard US Treasury bonds ETF||30%||2%||0.07%|
|IGLT: iShares UK Gilts ETF||30%||1%||0.07%|
This portfolio has only 30% equities, split 1:1 USA: UK. This represents significant ‘home bias’ towards the UK’s FTSE, compared to the global average. These ‘socially responsible’ ETFs track the biggest companies in the index – which constitute over 80% of the total stock market.
The bond portion of this master portfolio is invested 50:50 into US Government bonds and UK Government bonds.