The Tunji Letter, Edition #52
Wealth Isn't Primarily Determined by Investment Performance || The Fed Holds Rates at near Zero || Two ESG Themed ETFs to Know About
Welcome to the Tunji Letter, Edition #52.
// Quote of the Week
“Wealth isn’t primarily determined by investment performance, but by investor behavior.” - Nick Murray
When it comes to building wealth through investing for the long-term, your behavior matters the most. Of course, the performance of your investments is important, but your ability to be consistent when it comes to conducting research and following your investment plan is more important. Without the right behavior, your investments will not see the returns you dream of. Being consistent is something you will have to adapt, and you will if you truly want to build wealth.
// The Fed Holds Rates at near Zero
On Wednesday, June 16th, the Federal Reserve held interest rates at near-zero (0 to 0.25%) to further promote maximum employment and price stability goals as we continue to recover from the effects of COVID-19. In addition, the Fed reiterated that they are still committing to their asset purchasing program, which is absorbing approximately $120 billion a month in assets.
Even though the Fed is keeping interest rates low for now, some Fed officials expect a rate hike before the end of 2023. That is fair because most of the country should be vaccinated by then, meaning more people will be back to work. With more people working, there will be more economic activity, meaning the reduced need of the Fed to continue to keep interest rates low and the reduced need for their asset purchasing program.
// Two ESG Themed ETFs to Know About
ESG (Environmental, Social, & Governance) is an increasingly growing topic of interest as more investors are looking to invest in companies that promote and participate in things such as clean energy, sustainability, diversity, human rights, and consumer protection. When it comes to keeping up with companies that have ESG values, the ETFs iShares MSCI USA ESG Select ETF (SUSA) and the Vanguard ESG U.S. Stock ETF (ESGV) makes that easy.
SUSA is an ETF that seeks to track the investment results of the MSCI USA Extended ESG Select Index. SUSA allows you to gain exposure to companies such as Microsoft, Apple, Alphabet, Home Depot, and Tesla. As of June 18th, 2021, SUSA has a price of $92.27 and an expense ratio of 0.25%. In the past year, SUSA provided a total return of approximately 45%.
ESGV is an ETF that seeks to track the performance of the FTSE US All Cap Choice Index. ESGV allows you to gain exposure to companies such as Apple, Microsoft, Amazon, Alphabet, and Tesla. As of June 18th, 2021, ESGV has a price of $77.43 and an expense ratio of 0.12%. In the past year, ESGV provided a total return of approximately 37%.
// Latest Articles
Check out my latest articles:
· 3 Quick Points to Simplify FIRE
· 2 Quick Points to Simplify Meme Stocks
· 3 Cashback Credit Cards to Consider for Summer 2021
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Thank you for reading!
Tunji
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