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ESG investing at RBC Direct Investing

Your expert
Oskar G.
Fact checked by
Gyula L.
Updated
Jan 2024
Personally tested Personally tested
Data-driven Data-driven
Independent Independent

ESG investing at RBC Direct Investing as of January 2024

If you're investing for the long-term and can afford to look beyond simple profits and fees, ESG (environmental, social and corporate governance) investing is a great way to contribute to a more sustainable future.

RBC Direct Investing has some ESG-focused products and tools on offer, but maybe not the best on the market. See below if you can find a better alternative.

My key findings in a nutshell
Oskar
Oskar Golebiowski

I've thoroughly tested RBC Direct Investing services with our analyst team by opening a real-money account and these are my most important findings:

  • ESG investing focuses on companies' environmental and social practices and impact
  • RBC Direct Investing offers a decent number of ESG-themed assets to invest in
  • RBC Direct Investing provides OK tools to find and learn about ESG investments
RBC Direct Investing ESG services
Overall score
3.9 stars
ESG score
2.8 stars
ESG research quality
-
ESG ETFs
160
ESG funds
50
ESG education quality
Mid-range

Data updated on January 4, 2024

BrokerChooser score
3.9 3.9 /5
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What is ESG investing?

Are you a long-term investor? Then you probably care deeply about what the world will look like in 20 or 30 years. If you want to help bring about a future that is environmentally sustainable and socially inclusive - and can afford to set aside some or all of your savings for this purpose - we suggest you turn your attention to ESG investing.

What is ESG investing? It is an increasingly popular investment trend that involves taking into account environmental, social and corporate governance factors when deciding what sectors or companies to invest in.

  • Environmental criteria include companies' contribution to (or its efforts to prevent) climate change, pollution or biodiversity loss
  • Social criteria focus on treating employees, customers and suppliers fairly; involvement in armed conflict or humanitarian crises; or efforts to tackle public health issues such as those related to smoking or alcohol consumption
  • Corporate governance criteria involve transparency, protecting shareholders' rights, and leadership quality

The good news is that returns on ESG-focused investments are not necessarily inferior to those on non-ESG investments, although fees may be higher.

If you need more information, read our comprehensive introduction to ESG investing, or check out some helpful ESG investing strategies.

ESG assets at RBC Direct Investing

You can always make your own judgment whether a specific stock is ESG-compatible, but ESG investing is easiest via special ESG-themed ETFs (exchange-traded funds) or mutual funds. These are often special versions of popular index funds (such as those tracking the S&P 500) that give a larger weight to ESG-friendly stocks within the index or drop companies that engage in environmentally or socially harmful practices.

Here's what RBC Direct Investing and its closest competitors have to offer when it comes to ESG-themed instruments:

RBC Direct Investing and competitors ESG product selection
ESG ETFs
160 160 160
ESG funds
50 90 400
Stock and ETF fee scores
3.1 stars 2.8 stars 3.7 stars
Mutual fund fee scores
5.0 stars 4.2 stars 3.8 stars

Data updated on January 4, 2024

ESG tools at RBC Direct Investing

How can you tell if a stock has a good ESG record? Some brokers have great screeners that help you find the best ESG stocks among the thousands of stocks out there. Short of that, a good search function on your broker's trading platform can help you find ESG-themed ETFs or mutual funds. Some brokers also offer educational articles or webinars on ESG investing.

Here's how we rated these tools at RBC Direct Investing and some of its immediate competitors:

RBC Direct Investing and competitors ESG tool quality
ESG research quality
- - -
ESG education quality
Mid-range Poor Mid-range

Data updated on January 4, 2024

Best brokers for ESG investing

Do you want to zoom out and pick the best broker for long-term investment based on a full set of criteria including fees, trading platform experience and product selection? Look no further than our list of the best brokers for ESG investing.

Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.

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Further reading

Author of this article

Oskar Golebiowski
Oskar Golebiowski

Oskar is a former Canadian broker expert for BrokerChooser. Oskar's goal is to bring transparency to investors in the Canadian stock brokerage market. With a bachelor’s degree in finance and over 3 years of business experience, Oskar has tested many different investing platforms in the past. His aim is to provide unbiased and honest reviews of the best tools available to Canadian investors.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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