Vegan Etf: Where To Invest Your Money Wisely

With ethical and sustainable investing on the rise, the US Vegan Climate ETF (VEGN) is the first fund to specialise in vegan investments. The fund, which is provided by Beyond Investing and Beyond Advisors IC, invests in environmentally-friendly and cruelty-free companies such as Microsoft, Apple, and Meta.

VEGN seeks to track the Beyond Investing US Vegan Climate Index (VEGAN) and screens large-cap US companies for a variety of ESG (Environmental, Social, Governance) considerations, primarily animal harm and exploitation, as well as fossil fuels, environmental damage, and human rights.

VEGN's top holdings include Nvidia, Tesla, and UnitedHealth Group, and the fund held approximately $80.74 million in assets as of December 11, 2023.

For those looking for exposure to a wide range of plant-based stocks, another option is the VegTech Plant-based Innovation & Climate ETF (EATV), which is a pure-play fund investing in the global food systems transformation.

The US Vegan Climate ETF (VEGN)

VEGN seeks to invest in companies that offer a humane approach and are environmentally and ethically conscious. It aims to exclude companies that harm animals, are involved in animal testing, or create animal-derived products. VEGN also screens out companies involved in fossil fuels and their use in energy production, as well as those involved in military and defence, and those with a history of human rights abuses.

VEGN starts with the Solactive U.S. Large Cap Index, which consists of approximately 500 companies, and removes any company that does not meet its rigorous standards. As of September 30, 2023, the fund held 248 companies weighted by market capitalization, including NVIDIA, TESLA, and UnitedHealth Group.

To invest in VEGN, you can contact your broker, access your online trading platform, or use a retirement or RIA platform.

Beyond Meat

For investors interested in vegan and sustainable investment opportunities, Beyond Meat presents an option in the food processing and plant-based meat industry. The company has been featured in recent news articles discussing its financial performance and product innovations, such as revamping its plant-based burger to boost sales.

Oatly

Despite this, Oatly remains committed to its values. The company believes that developing products that are "in" with consumers, such as those with sustainable packaging and low sugar, will set them apart from larger corporations entering the vegan market. Oatly also focuses on research and development and aims to control the entire value chain to protect against imitation and increase margins.

For those looking to invest in vegan companies, Oatly is an option. However, the volatility of individual stocks may be a concern. In that case, investing in a vegan-focused ETF, such as the Rize Sustainable Future of Food ETF or the Ossiam Food for Biodiversity ETF, may be a more appealing option.

Ag tech

The following information focuses on 'Ag tech' as an area of interest for vegan ETF investment.

Local Bounti is an "ag tech" company that has gone public in recent years. It was founded in 2018 and uses vertical farming and hydroponic greenhouse techniques to grow lettuce and herbs. Their patented "Stack and Flow" technology is more environmentally sustainable than traditional agriculture, using 90% less water and land while increasing harvest efficiency. Local Bounti has minimal revenue so far, but management is optimistic, targeting $462 million in revenue by 2025.

Another "ag tech" company to consider is AppHarvest (NASDAQ: APPH). AppHarvest is an applied technology company that builds and operates large-scale tomato and lettuce indoor farms by utilizing Dutch hydroponic farming techniques and controlled environments. Their sustainable approach to agriculture aims to reduce water usage by 90% compared to traditional open-field farming, and they use 100% recycled rainwater.

For a broader investment in the "ag tech" space, you may want to consider the Global X AgTech & Food Innovation ETF (KROP US). This ETF provides exposure to companies at the intersection of agriculture and technology, including those involved in indoor vertical farming, robotics, and alternative proteins.

Other Vegan ETF Options

If you're interested in a more diverse range of vegan investment options beyond just "ag tech," there are several other companies and ETFs to consider:

• Beyond Meat (NASDAQ: BYND)
• Oatly (NASDAQ: OTLY)
• Tattooed Chef (OTCPK: TTCF.Q)
• Mission Produce (NASDAQ: AVO)
• VegTech Plant-based Innovation & Climate ETF (EATV)
• US Vegan Climate ETF (VEGN)

Synthetic biology

Bill Gates, the founder of Microsoft, is an early investor in synthetic biology. He has helped fund Ginkgo Bioworks, which develops custom-built microbes, and Pivot Bio, a sustainable agriculture company. Other tech founders who have recognised the potential of synthetic biology include Eric Schmidt, a co-founder of Google, and Peter Thiel, a co-founder of PayPal, Palantir Technologies, and Founders Fund.

The cost of reading and writing DNA has fallen exponentially in recent years, and the number of synthetic biology companies has skyrocketed. There are now over 600 companies in the space, compared to less than 100 in 2000. The industry has raised over $12 billion in the past decade, with $3.8 billion of that in the last year alone.

Serious money is pouring into synthetic biology companies, and investors who recognise the incredible potential of this field stand to make fortunes.

Frequently asked questions