Key insights
- The user is weighing the trade-offs between a standard S&P 500 ETF and a Paris-Aligned Climate S&P 500 ETF. The core question revolves around whether the climate-focused ETF significantly underperforms the standard S&P 500 while still providing sufficient US market exposure. The user seeks opinions on whether the ethical considerations justify any potential return sacrifice. A slight negative influence is assigned due to the potential for constrained investment choices impacting returns.
If you had to choose between a plain S&P 500 ETF and a Paris-Aligned Climate S&P 500 ETF for long-term investing, which would you pick and why?
I’m trying to balance returns with being at least somewhat ethical, and I’m wondering if the climate-screened version is worth it or if the regular S&P 500 is just the smarter move.
I’m not asking which one is “morally perfect.”
I’m more trying to understand:
- Whether the Paris-Aligned version is meaningfully worse for returns over time - Whether it still gives broad enough US exposure - Whether people here think the ethical/climate screening is actually worth the trade-off - Whether a regular S&P 500 ETF is just the better choice if my goal is mostly growth
Thanks all