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3 Vegan ETFs to Invest in 2024

3 Vegan ETFs to Invest in 2024
Bogdan Stojkov

Summary: In this guide, we explore the best vegan ETFs that can generate potential returns this year. The most convenient way to invest in these ETFs is through a reputable brokerage platform like Interactive Brokers.

Best Platform for Worldwide Stock Trading & Investing

  • Highly trusted multi-asset broker with clients in over 200 countries

  • Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

  • Low commissions starting at $0 with no platform fees or account minimums

  • Easily fund your account and trade assets in 26 currencies

  • IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

What are vegan ETFs?

Vegan ETFs (exchange-traded funds) are investment funds that specifically focus on companies engaged in vegan-related industries. These industries include plant-based food production, cruelty-free consumer goods, renewable energy, and sustainable practices.

By investing in these funds, individuals contribute to a positive impact on the environment, animal welfare, and overall sustainability.

3 vegan ETFs to invest in this year

After thorough research, we’ve concluded that the following vegan ETFs appear as the most promising for this year:

  1. Advisors Series Trust Plant-Based Innovation & Climate ETF (NYSE Arca: EATV);
  2. US Vegan Climate ETF (NYSE Arca: VEGN);
  3. iShares Global Clean Energy ETF (NASDAQ: ICLN).

Each of these vegan ETFs is available on Interactive Brokers.

Best Platform for Worldwide Stock Trading & Investing

  • Highly trusted multi-asset broker with clients in over 200 countries

  • Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

  • Low commissions starting at $0 with no platform fees or account minimums

  • Easily fund your account and trade assets in 26 currencies

  • IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

If you’re interested in investing in vegan stocks, consider reading our guides on:

Advisors Series Trust Plant-Based Innovation & Climate ETF (EATV)

The Advisors Series Trust ETF is a standout option for investors seeking exposure to a diverse portfolio of vegan-friendly companies. This fund includes businesses involved in plant-based food production, sustainable agriculture, and eco-friendly technologies. Also, this vegan ETF is actively managed, meaning experienced professionals make strategic decisions to optimize returns based on market trends.

EATV stock price today

US Vegan Climate ETF (VEGN)

The US Vegan Climate ETF is another promising choice for socially responsible investors. This fund places a strong emphasis on companies that not only follow vegan principles but also demonstrate a commitment to minimizing their environmental impact. Therefore, by investing in the US Vegan Climate ETF, individuals can support businesses actively working towards a greener future.

VEGN stock price today

iShares Global Clean Energy ETF (ICLN)

While not exclusively a vegan ETF, the iShares Global Clean Energy ETF includes companies that align with vegan values. This fund focuses on businesses involved in renewable energy sources, making it an excellent choice for those interested in both ethical and sustainable investing. Moreover, with a global perspective, ICLN offers exposure to companies making significant strides in clean energy solutions.

ICLN stock price today

Where to buy vegan ETFs?

Investing in vegan ETFs is straightforward, and investors can do so through various brokerage platforms. In this case, our go-to broker is Interactive Brokers, a popular platform with a host of solid investing features, such as:

  • Low commissions and financing rates to maximize returns;
  • Global access to stocks, futures, bonds, and funds;
  • Trading efficiency with advanced technology;
  • Secure trading experience.

Best Platform for Worldwide Stock Trading & Investing

  • Highly trusted multi-asset broker with clients in over 200 countries

  • Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

  • Low commissions starting at $0 with no platform fees or account minimums

  • Easily fund your account and trade assets in 26 currencies

  • IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

Pros and cons of investing in vegan ETFs

Pros

Pros

  • Ethical impact: Investing in vegan ETFs allows individuals to align their financial goals with ethical values, promoting a more sustainable and compassionate world;
  • Diversification: Vegan ETFs often comprise a diversified portfolio, reducing the risk associated with investing in individual stocks;
  • Environmental stewardship: By supporting companies with eco-friendly practices, investors contribute to the promotion of sustainability and combat climate change.
Cons

Cons

  • Market volatility: Like any investment, vegan ETFs are subject to market fluctuations, and their performance may be affected by economic downturns;
  • Limited choices: The universe of vegan ETFs is still relatively small compared to traditional funds, limiting options for investors looking to build a diverse portfolio exclusively within this niche;
  • Performance risks: While the ethical aspects are appealing, investors must also consider the financial performance of the companies within the ETF, as poor financial performance can impact returns.

If you aim to explore the best vegan stocks in the industry in greater detail, feel free to peruse our guides on these stocks:

Common mistakes to avoid when investing in vegan ETFs

  • Neglecting research: Thoroughly research each vegan ETF to understand its holdings, investment strategy, and historical performance before making investment decisions;
  • Ignoring diversification: While vegan ETFs offer a unique investment approach, it’s essential to maintain a diversified portfolio to mitigate risks;
  • Overlooking costs: Pay attention to the expense ratios associated with the ETFs, as high fees can erode potential returns over time;
  • Neglecting risk tolerance: Assess your risk tolerance and financial goals before investing, as market fluctuations can impact the value of your investments;
  • Chasing trends: Avoid investing based solely on current trends. Consider a long-term perspective and the fundamentals of the companies within the ETF.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about vegan ETFs

Is there a vegan ETF?

Yes, there are vegan ETFs like Advisors Series Trust EATV, US Vegan Climate ETF, and iShares Global Clean Energy ETF ICLN. These funds focus on ethical and environmentally conscious companies.

What is the Beyond Investing US Vegan Climate Index (VEGAN)?

The Beyond Investing US Vegan Climate Index (VEGAN) is the benchmark for the US Vegan Climate ETF. It includes companies adhering to vegan and environmentally friendly criteria, providing investors a way to support ethical and sustainable practices.

Are vegan ETFs only suitable for vegans?

No, vegan ETFs are suitable for any investor looking to support ethical and environmentally friendly businesses.

How do I purchase vegan ETFs?

You can purchase vegan ETFs through online brokerage platforms like Interactive Brokers, which offer socially responsible investing options.

Are vegan ETFs more volatile than traditional funds?

Like any investment, the volatility of vegan ETFs can be influenced by market conditions. However, diversification within these funds may help mitigate some risks.

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