The climate shifts
Your portfolio is exposed

An ETF (exchange-traded fund) is a fund you buy and sell on the stock market, like a share. Instead of investing in one company, an ETF gives you exposure to a group of companies or assets in a single purchase. Your money is spread across the holdings inside the fund, and the ETF's performance depends on how those holdings perform over time.

Climate-related transition risks are financial risks tied to the shift toward a low-carbon economy. They can stem from changes in policy, regulation, technology, market dynamics, or public expectations. These changes affect how companies operate, what they pay, and how they grow.

These risks put pressure on the companies a fund holds. Higher costs, tighter regulation, supply constraints, or weaker demand can reduce company performance and weigh on long-term returns. Because these risks are often not fully reflected in market prices today, investors may hold an ETF expecting one return profile while carrying exposure that leads to a different outcome.