Vegan ETFs: A Guide to Sustainable Investing

Vegan ETFs offer a unique opportunity for investors to align their portfolios with their values and promote sustainable living.

The first vegan ETF was launched in 2019, marking a significant milestone in the growth of plant-based investing.

By investing in vegan ETFs, you can support companies that are working to reduce animal suffering and promote environmental sustainability.

Vegan ETFs focus on companies that are leaders in plant-based innovation, such as food and beverage companies that offer vegan alternatives to traditional products.

These companies are often pioneers in reducing greenhouse gas emissions and promoting sustainable agriculture practices.

Some vegan ETFs also screen out companies involved in animal testing, deforestation, and other practices that harm the environment.

Investing in vegan ETFs can be a powerful way to promote positive change and make a difference in the world.

The new launch of vegan ETFs is a game-changer for investors looking to make a positive impact on the environment.

Vegan ETFs are investment funds that track the performance of companies that align with vegan values, excluding those involved in animal agriculture and other industries that harm animals or the planet.

One notable example is the iShares MSCI ACWI Low Carbon Target ETF, which excludes companies with high carbon emissions and focuses on low-carbon investments.

This ETF has a low expense ratio of 0.19%, making it an attractive option for investors looking for a cost-effective way to invest in socially responsible funds.

The iShares MSCI ACWI Low Carbon Target ETF has a net asset value (NAV) of over $1 billion, demonstrating its popularity among investors.

Another key feature of vegan ETFs is their focus on plant-based foods, which are expected to experience significant growth in the coming years.

The vegan ETF market is still relatively new, but it's already showing signs of rapid growth, with new funds being launched regularly.

Investors can expect to find a range of vegan ETFs available, each with its own unique investment strategy and focus.

The US Vegan Climate ETF (VEGN) is a passively managed U.S. Equity Large Growth exchange-traded fund (ETF) that was launched by Beyond Advisors IC in 2019.

This ETF seeks to track the performance of the Beyond Investing U.S. Vegan Climate Index, which is constructed from the constituents of the Solactive U.S. Large Cap Index, consisting of approximately 500 of the largest U.S.-listed companies.

Under normal circumstances, at least 80% of the fund’s net assets, plus borrowings for investment purposes, will be invested in securities that are traded principally in the U.S.

The fund generally invests in all of the component securities of the index in approximately the same proportion as in the index.

The US Vegan Climate ETF is a well-structured fund with a strong management team. The average tenure of the 3 members is 3.76 years, with Dustin Lewellyn, Ernesto Tong, and Christine Johanson leading the team.

The fund has a clear investment strategy, tracking the Beyond Investing US Vegan Climate GR USD index with a 100% weighting. This focus on a single benchmark allows for a streamlined investment approach.

The ETF has a relatively small number of holdings, with 259 securities in its portfolio. However, the top 10 holdings account for a significant 40.7% of the fund's assets.

The fund's ESG focus is evident in its investment selection and management. With a diversified portfolio that meets the SEC requirement, the US Vegan Climate ETF is a solid choice for those seeking a responsible investment option.

The fund's allocation to domestic and foreign stocks is relatively straightforward, with 98.9% of assets invested in domestic stocks and 0.8% in foreign stocks. There is no allocation to preferred stocks or bonds.

The US Climate Grades are a crucial aspect to consider when evaluating vegan ETFs. The VEGN ETF, for instance, has a year-to-date return of 2.6%, which is 0.6 percentage points worse than the category average, earning it a grade of D.

The ETF's performance over the past year has also been underwhelming, with a return of 26.8% and a grade of D. However, over the past three years, the ETF has returned 12.1%, earning a grade of C.

Here's a breakdown of the ETF's grades over different time periods:

As you can see, the ETF's performance has been inconsistent, with some periods showing better returns than others. It's essential to consider these grades when evaluating the VEGN ETF and deciding whether it's a good fit for your investment portfolio.

The US Vegan Climate ETF (VEGN) has returned a total of 67.91% since inception to end of August 2021, outperforming the S&P 500 Index's 57.07%.

VEGN has a portfolio turnover rate of 0%, indicating that it holds its assets for years, which can lead to lower expenses and higher aftertax returns.

In January 2025, VEGN returned 2.6%, earning it a grade of D in the Large Growth category, where the average return was 3.3%.

VEGN has a lower carbon footprint (-77%), waste footprint (-98%), and water footprint (-93%) per unit of revenue than the S&P 500 and many other ESG indexes.

Here's a summary of VEGN's performance rankings:

The US Vegan Climate ETF, also known as VeGN, has a portfolio turnover rate of 0%, which is significantly lower than the average portfolio turnover rate of 52% for the Large Growth category.

This low turnover rate is a positive sign, as it indicates that VeGN holds its assets for a long time, resulting in lower expenses and potentially higher aftertax returns.

In January 2025, VeGN returned 2.6%, which earned it a grade of D, as the Large Growth category had an average return of 3.3%.

The letter grades of A, B, C, D, and F are based on relative rankings within the investment category, with A indicating a return in the highest 20% for that time period.

VeGN's performance can be evaluated using the Trailing NAV Total Returns data, which ranks the fund's returns within its category.

Here's a breakdown of the Trailing NAV Total Returns data:

This data provides a clear picture of VeGN's performance within its category, helping investors make informed decisions about their investments.

Beyond Investing's US Vegan Climate ETF, VEGN, has outperformed the S&P 500 Index since inception, returning 67.91% compared to the S&P 500's 57.07% (on market price) since the end of August 2021.

The VEGN ETF has attracted around $65 million in assets, showcasing the growing interest in ethical investment and eco-conscious investing.

Claire Smith, CEO of Beyond Investing, attributes the fund's success to its commitment to animal-friendly and climate-conscious investing, highlighting that it's good for people, the planet, and your pocketbook.

The fund is free from animal exploitation, weapons, and fossil fuels, and has a lower carbon footprint (-77%), waste footprint (-98%), and water footprint (-93%) per unit of revenue than the S&P 500 and many other ESG indexes.

VEGN is the only US Equity Fund that scores highly on measures such as Fossil-Free (A), Deforestation-Free (A), and Weapons-free (A).

Investing in vegan ETFs requires a solid understanding of core investing principles.

Diversification is key to minimizing risk, as seen in the example of the vegan lifestyle index, which tracks a basket of companies that cater to the growing demand for plant-based products.

A long-term approach is essential, as the vegan market is still evolving and requires patience.

Regular portfolio rebalancing helps maintain an optimal asset allocation, ensuring that your investments stay aligned with your financial goals.

A well-diversified portfolio can also help you ride out market fluctuations, as observed in the performance of the vegan agriculture index.

It's also essential to consider your risk tolerance and investment horizon when selecting a vegan ETF.

As you explore the world of vegan ETFs, you may come across the terms "vegetarian" and "vegan." While both diets prioritize plant-based eating, there's a key difference: vegetarians consume animal by-products like dairy and eggs, whereas vegans do not.

Vegetarians can be further divided into three subcategories: lacto-ovo-vegetarians, lacto-vegetarians, and ovo-vegetarians, each with varying levels of animal product consumption.

For vegans, the goal is to avoid all animal-derived products, including honey, gelatin, and even some types of sugar.

The US Vegan Climate ETF (VEGN) is an investment option that caters to those who are worried about climate change or animal cruelty, but it's not a vegetarian-focused fund.

Beyond Investing, the provider of VEGN, lists a Florida mailbox as its address, which might raise some red flags about its legitimacy.

The prospectus for VEGN highlights the fund's focus on climate change and animal cruelty, but it doesn't specifically address the vegetarian diet.

Here's a comparison of some key features of VEGN:

It's worth noting that the prospectus for VEGN is 17 pages long and covers various aspects of the fund, but it's not clear if vegetarianism is one of them.

VEGN is an exchange-traded fund that tracks the US Vegan Climate index.

The US Vegan Climate ETF (VEGN) was launched on September 9, 2019.

It's issued by Beyond Investing, a company that specializes in socially responsible investing.

VEGN seeks to track a principles-based index of U.S. equities weighted by market-cap.

This means that the fund's holdings are determined by a set of principles that prioritize social and environmental impact.

The fund's goal is to provide investors with a way to invest in the US stock market while also promoting vegan values and reducing their carbon footprint.