Been reading about it on www.GreenMoney.com
SRI is growing in popularity, especially with large institutional investors. According to the most recent report from The Forum for Sustainable and Responsible Investment (www.ussif.org), there was a 76% increase in the amount of institutional dollars screened for social metrics. More than one in six dollars under professionally management is now filtered for sustainability. The noted website has a significant amount of information on the topic and has tables showing how various commercially available mutual funds are screened.
Individual investors should be aware that not all investment advisors are familiar with this area of investing. There are options available to you, however, whether you prefer to compensate your advisor by commission, an annual asset-based fee or by the hour.
If you are interested in doing everything possible to assure market performance, the use of a balanced mix of low cost index funds is generally the easiest route. If you prefer to own, support and benefit from companies that better reflect your values or worldview, then you have some work to do. Fortunately, there are a number of good books on the topic and a number of advisors that specialize in this area.
The concept of SRI (Socially Responsible Investing) is that you invest in mutual funds that use certain metrics or methodologies that screen out companies that do not share the fund's philosophy. You can also invest in individual stocks that support your philosophy. Many of my clients specifically request these funds and stocks and are fully aware that the returns may not be as good as a mutual fund that do not use such screens. Traditionally, this has been the case. But with heightened interest from Millennials about SRI, more money is flowing into these funds and they are becoming more sophisticated. Infact, there are two ETFs that have done quite well and can easily be found using a Google search. Good luck!
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