ShareBuilder 401k is adding two environmental, social and governance (ESG) investments to its exchange-traded funds (ETFs) 401(k) lineup and now provides customers with the option to include socially and environmentally friendly funds in their retirement portfolios.
The two sustainable funds, also referred to as ESG funds, are the iShares MSCI USA ESG Select ETF fund (SUSA), which tracks the investment results of an index composed of U.S. companies that have positive ESG characteristics, and the S&P 500 Fossil Fuel Free Index (SPYX), which is designed to measure the performance of companies in the S&P 500 index that are fossil fuel free—in that they do not own fossil fuel reserves.
The firm says these additions, in conjunction with the existing DSI (iShares MSCI KLD 400 Social ETF) fund, provide customers with the ability to include all three ESG categories within their 401(k)s. The addition expands the ShareBuilder 401k roster for the first time in more than a decade from 20 ETFs to 22 ETFs. Employees may also choose to invest in a money market fund or select one of the five all-ETF model portfolios offered in ShareBuilder 401k plans.
“Our proprietary analysis, models and investment experts determine the investments within our plans to ensure that our customers have access to high-quality, high-performing funds that are diverse, retirement appropriate and low cost,” says Stuart Robertson, president and CEO of ShareBuilder 401k. “As of today, we’ve added two ESG funds that meet this high bar to be included in the ShareBuilder 401k lineup. We are pleased to add these funds to cover sectors that are the focus of innovation and are an increasing area of interest among investors.”
Beyond these ESGs, ShareBuilder 401k’s investment lineup includes high-quality ETFs in core asset classes such as large-, mid- and small-cap equity and fixed income options, as well as ETFs that cover inflation-protected securities, real estate, gold and more. The company says this helps investors manage through various economic times and market conditions, while also serving to meet their retirement time horizon and risk tolerance.