Opinions on the Vegan ETF?

[Alden]

Hi everyone, I have been investing for few years only on FTSE All world and then went to VT after moving here to Switzerland. I am now considering investing into the Vegan ETF (VEGN), both to be more inline with my morals, and because I believe it’s a profitable market in the long run.

I have a general question of what people here think about that ETF, and a more specific question regarding the taxation.

I understand that by buying VT there is a favourable taxation due to US-Swiss accords.

Would it be the same for any ETF from the US or is there any particular consideration that I should make in regards to purchasing this ETF?

(If needed for context, I use interactive brokers)

[Helix]

@Alden

I am now considering investing into the Vegan ETF (VEGN), both to be more inline with my morals, and because I believe it’s a profitable market in the long run.

Profitable is not enough, it must also be cheap. It is unlikely that any of us have an information edge over the market in a whole market segment.

Reagrding investment in moral businesses:

Investment alternatives to high ESG

In this somewhat clickbaity video Ben Felix argues that ESG investing does not have any effect. And if it had, it would be the opposite of what was intended: [Is ESG Investing Counterproductive?] From my point of view there are 2 things: There is opportunistic capital trying to maximize returns acting as a buffer. High ESG companies don’t become less profitable (by having a higher and higher price), because opportunistic capital is leaving for low ESG companies (which therefore …

To make a long story short: Moral businesses can’t prosper or better themselves from your moral investment. The businesses in dire need of morals are sinful businesses.

[dbu]

Thematic ETFs are mostly a fad - weed, ESG, vegan.
Just pass and “do good” elsewhere.

[PhilMongoose]

Have I told you that I’ve invested in a VEGAN ETF??! You should try it! You can hardly tell the difference between a non-vegan ETF!

[dom.swiss]

Looks like there is a clear winner between VEGN and MEAT

[maltfield]

@Alden

I am now considering investing into the Vegan ETF (VEGN), both to be more inline with my morals

If morality is important to you, I wouldn’t recommend the VEGN ETF.

• Green Vegan ETF Scam - Green

They hold a lot of unethical companies, including Tesla and United Health.

[dom.swiss]

@maltfield

If morality is important to you, I wouldn’t recommend the VEGN ETF.

From my observations, it is impossible to maximize everything. Morals are individual, environmental protection is open for discussion, even social impact is not a clear-cut case. Mustachians want returns but often virtue-signalling products offer lower returns than peers.

For small investors, it is no very efficient to buy individual stocks and it makes risk management a bit more cumbersome. Even a fantastic company might be involved in a controversy or have a C-level employee defraud supliers.

It’s good to point out issues with investments but also take everything with a pinch of salt.