The ii ACE 40 makes investing ethically easy.
From our list of more than 140 ethical investment options, we have picked out what we believe to be the 40 best-in-class funds, investment trusts and exchange-traded funds (ETFs). These offer the highest quality across a wide variety of markets.
You can find out how each one attained ii rated status by reading our Methodology and FAQs.
Our ii ACE 40 selections are:
- High-quality companies chosen from the widest possible range of ethical investments
- From different sectors and regions, with risk options from core to adventurous
- Designed to suit ALL investors
- Chosen for their potential to deliver strong financial performance
- Managed in a genuinely ethical manner – there is no ‘greenwashing’ of information that aims to mislead about the environmental credentials of a company
Past performance is not a guarantee of future performance.
The ACE 40 list offers a filtered selection of collective investment vehicles for all investors, new or experienced. We aim to provide a menu of high-quality choices across a broad variety of markets and investment types.
Tools
Ethical growth portfolio – designed to give you an idea about how you can build your own balanced ethical portfolio.
How to use the ii ACE 40
The ii ACE 40 is sorted into asset groups, investment categories and ACE ethical styles.
Asset groups include global equities and fixed-income options, while the investment categories suit the type of investor you are. These range from low cost – for those looking to control what they are paying – to smaller company and adventurous, for investors keen to add higher-risk options to a balanced portfolio.
The investment categories follow a similar structure to our Super 60, but the limited range of ethical options available means some categories are currently blank. We plan to add extra options over time as new ethical investments are launched or build up a good track record of performance.
ACE ethical styles explained
Each fund is given an ACE ethical style. Where a fund’s manager adopts more than one, we use the strongest that applies:
Avoids.
Funds that focus on simply excluding companies, sectors or specific business practices.
Considers.
Funds that carefully consider an often wide range of ethical and/or environmental, social and governance (ESG) issues or themes when balancing positive and negative factors.
Embraces.
Funds that focus on companies delivering positive social and/or environmental outcomes.
All funds listed are the Accumulation version of the fund, where available, where any income generated within the fund is reinvested automatically. Income versions of these funds may also be available for investors looking for income generated to be paid directly into their account. The information we provide in the ACE investments list does not constitute a personal recommendation. You should ensure that any investment decisions you make are suitable for your personal circumstances and that the ethical style of the investment reflects your personal beliefs. Past performance of the underlying constituents is not a guarantee of future performance. Remember, the value of investments and any income from them can fall as well as rise, so you could get back less than you invest.
Display ii ACE 40 investments by:
ii ACE ethical styles
ii ACE 40 - Avoids
Funds that focus on excluding companies, sectors or specific business practices in line with the published fund criteria that may focus on ethical, social and/or environmental issues.
Funds in this group vary significantly. Some will exclude only a small number or companies (for example perhaps only a small percent of their possible universe), others have extensive exclusions (50% or more of their possible universe). The most common areas of exclusion are tobacco companies, weapons manufacturers and companies that breach internationally agreed standards - some include multiple additional issues. Passive funds typically fall into this group, generally with limited exclusions.
Name | Asset group | Investment category | Selection rationale | Invest now |
| iShares MSCI EM SRI ETF USD Acc GBP | Equities Emerging markets | Low cost | find out more | trade |
| iShares MSCI USA SRI ETF USD Acc GBP | Equities US equities | Low cost | find out more | trade |
| Trojan Ethical Income Fund O Acc | Equities UK equity income | Adventurous | find out more | trade |
| UBS ETF MSCI Pacific SRI USD A dis GBP | Equities Asian equities | Low cost | find out more | trade |
| UBS ETF MSCI World SRI USD A dis GBP | Equities Global equities | Low cost | find out more | trade |
| Unicorn UK Ethical Income B Acc | Equities UK equity income | Smaller company | find out more | trade |
| Vanguard SRI European Stock GBP Acc | Equities European equities | Low cost | find out more | trade |
| Royal London Ethical Bond | Fixed income Sterling bonds | Core | find out more | trade |
| Aegon Ethical Equity | Equities UK equities | Adventurous | find out more | trade |
ii ACE 40 - Considers
Funds that actively consider ethical and/or environmental, social and governance (ESG) issues as part of their investment strategies.
Funds in this group vary significantly but typically consider multiple positive and negative issues when deciding where to invest - with many emphasising positive stock selection. Most avoid controversial business practices and focus on sectors, themes and activities that the managers believe to be both financially sound and ethically, socially and/or environmentally beneficial. Many funds also have responsible ownership (stewardship) strategies and aim to improve companies' environmental and/or social practices.
ii ACE 40 - Embraces
Funds that focus on companies delivering positive social and/or environmental outcomes.
These funds often refer to focusing on 'delivering positive impacts' as a major element of their investment strategy and purpose. Alternatively they may simply be entirely invested in a sector (such as renewable energy or social housing) where the potential to help deliver positive benefits is widely recognised. Fund strategies vary and you should be aware that unlike the other two styles additional ethical factors may not always be considered by funds of this kind.
Name | Asset group | Investment category | Selection rationale | Invest now |
| Impax Asian Environmental Markets IRL X | Equities Asian equities | Adventurous | find out more | trade |
| Impax Environmental Markets Ord | Equities Global equities | Smaller company | find out more | trade |
| iShares Global Clean Energy ETF USD Dist GBP | Alternatives Specialist | Low cost | find out more | trade |
| Syncona Ord | Alternatives Specialist | Adventurous | find out more | trade |
| Threadneedle UK Social Bd Z Grs Acc£ | Fixed Income Sterling bonds | Adventurous | find out more | trade |
| VT Gravis Clean Energy Income C GBP Acc | Alternatives Specialist | Income | find out more | trade |
| Lyxor Green Bond | Fixed income Global bond | Low cost | find out more | trade |
| FP Foresight Global Real Infrastructure | Alternatives Specialist | Core | find out more | trade |
| Baillie Gifford Positive Change | Equities Global equities | Adventurous | find out more | trade |
| Montanaro Better World | Equities Global equities | Smaller companies | find out more | trade |
Risk warnings
The information we provide in the ACE 40 investments list does not constitute a "personal recommendation". You should ensure that any investment decisions you make are suitable for your personal circumstances and that the ethical style of the investment reflects your personal beliefs.
Past performance of the underlying constituents is not a guarantee of future performance. Remember, the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.
Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab.
If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor.
Any changes to the ii ACE 40 investments list and the rationale behind those decisions will be communicated through the Quarterly Investment Outlook.
Details of all recommendations issued by ii during the previous 12 month period can be found here.
ii adheres to a strict code of conduct. Members of ii staff may hold shares in companies mentioned in the ii ACE 40 investments list, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.
In addition, staff involved in the production of this ii ACE 40 list are subject to a personal account dealing restriction. This prevents them from placing a transaction in the specified instrument(s) for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of this ii ACE 40 investments list.
Not yet an ii customer?
You can buy the ii ACE 40 investments in any of the accounts we offer.