Avoiding Oil stocks in a FTSE tracker

[Deleted User]

I'm looking for UK tracker/passive funds that avoid BP/Shell etc. Do you know of any?

[Deleted User]

I found this one
https://www.legalandgeneral.com/investments/funds/full-fund-range/future-world/future-world-esg-uk-index-fund/

But the 2nd biggest holding is Shell

aberlyfid_2000

surprisingly thin ground....


this comes close, but appears that the miners are also stripped out:
BMO Responsible UK Equity
https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/b/bmo-responsible-uk-equity-class-2-accumulation

AnotherJoe

There are two US-based Index funds (ETFs IIRC) I came across when looking earlier this year.

You might try looking for UK "ethical" funds maybe theres one that matches but their charges tend to be high for no discernible reason I can see.

I've just started investing directly in whats called "sustainable" energy stocks, eg solar/wind (mostly) within ETFs and ITs apart from a couple of companies in the industry.

SonOf

If you start making management decisions then you really cease to be a passive investor. Some ethical/socially responsible funds will meet your criteria but you are looking at a more active approach in general.

[Deleted User]

AnotherJoe wrote: »

I've just started investing directly in whats called "sustainable" energy stocks, eg solar/wind (mostly) within ETFs and ITs apart from a couple of companies in the industry.

What ones?
I hold ishares electric cars (ETF) and Gravis Clean Energy (fund)

Thrugelmir

Both BP and Shell are realigning themselves. Will be major players in the years ahead. The greater the disinvestment the more rewarding holding the stocks will become.

AnotherJoe

newbinvestor wrote: »

What ones?
I hold ishares electric cars (ETF) and Gravis Clean Energy (fund)

INRG, TRIG, Orsted, a wild card BYD (BYDDY) and not really an energy stock but I do have some Tesla more for speculation as I can see it getting back to 400 over the next year or so.

AnotherJoe

Thrugelmir wrote: »

Both BP and Shell are realigning themselves. Will be major players in the years ahead. The greater the disinvestment the more rewarding holding the stocks will become.

I think BP and Shell will have a lot of stranded assets that will hurt them. Their investments in renewable and EV charging, whilst large relatively, are microscopic in relation to their overall assets

bowlhead99

At the end of the day, the FTSE100 is about 16% oil and gas, but that comes from just three stocks - Royal Dutch Shell A & B, and BP. Total £295 billion market cap. In the broader FTSE All-Share, there are thirteen oil and gas stocks, but those ten extra stocks with average of a billion market cap each only take the market cap up to £305bn.

So basically whether you look at a FTSE100 tracker or a FTSE all share tracker, it's just Shell and BP driving nearly all the oil and gas component of those passive returns.

As such, you could get basically the same return as a 'FTSE UK ex-oilngas' tracker by putting £10,000 into a FTSE100 or FTSE all-share tracker, and then taking short exposure for £1600-worth of Shell and BP, to give you approx net nil exposure to that industry. You could do that relatively easily using a spreadbet or CFD provider such as IG.com. There's transaction/spread costs in doing that, but not massively expensive.

I can't say I would do it myself, but then I can't say I would buy a FTSE ex-oil tracker (or a FTSE UK inc-oil tracker for that matter).

AnotherJoe

And presumably that could be fairly easily expanded to a global tracker with a short against oil generally? Because you shouldn't be encouraging anyone to invest in the FTSE100/as