The only 3 resources stocks to pass AusEthical’s filters

The ASX is a resources heavy exchange, materials is the second largest sector accounting for ~25% of the ASX200. For many investors this deep pool of companies drawing on Australia’s mineral endowment is a fertile hunting ground. 

The reality for Mike Murray , Head of Domestic Equities at Australian Ethical, is that the sector is difficult to navigate as the vast majority of stocks don’t pass the firms Ethical Charter.

“It’s got a very heavy environmental footprint at the extraction phase. There’s a great deal of rehabilitation that has to go on. Then when we look at things like fossil fuels, we just don’t invest in fossil fuel companies.”

To Murray's point, there are 62 resource companies in the ASX300, of those the firm own just three across their domestic strategies. While investors shouldn’t expect to get a big materials exposure through AusEthical the sector is not void of opportunity. 

In this short video, Murray shares three materials stocks that made it into the firm’s portfolios.  

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Australian Ethical started investing ethically in 1986. 36 years later, it is now easier than ever to invest ethically. Their first ETF, 'AEAE' gives you access to a focused basket of stocks from the S&P ASX 300, actively managed by their award-winning team from both an ethics and investment perspective. It is a High Conviction active ETF, giving you the added flexibility to buy or sell whenever you like.

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