In today’s world, it is becoming increasingly important for investors to consider more than just financial returns when making investment decisions. With growing awareness about social and environmental issues, many investors are now looking to support companies that have a positive impact on the world. This has led to a surge in the popularity of ethical investment funds, which focus on companies that adhere to ethical and sustainable practices. In this article, we will explore some of the best ethical investment funds available to investors.
1. Vanguard FTSE Social Index Fund Investor Shares
Vanguard is one of the most well-known names in the investment world, and their FTSE Social Index Fund is a top pick for ethical investors. This fund tracks the performance of the FTSE4Good US Select Index, which includes companies that meet strict environmental, social, and governance criteria. With a low expense ratio and a strong track record of performance, this fund is an excellent option for investors looking to align their values with their investments.
2. Parnassus Core Equity Fund Investor Shares
The Parnassus Core Equity Fund is another popular choice for ethical investors. This fund focuses on companies with strong environmental, social, and governance practices, as well as a commitment to corporate responsibility. The fund has a long history of outperforming its benchmark and is managed by a team of experienced professionals who are dedicated to sustainable investing principles.
3. Calvert Equity Fund Class A
Calvert is a leader in the field of socially responsible investing, and their Equity Fund is a top performer in the space. This fund invests in companies that are leaders in environmental stewardship, social responsibility, and good governance. With a diversified portfolio of large-cap stocks, this fund offers investors a solid option for ethical investing.
4. TIAA-CREF Social Choice Equity Fund Retail Class
TIAA-CREF is a well-respected financial institution that offers a range of socially responsible investment options, including the Social Choice Equity Fund. This fund invests in companies that score highly on environmental, social, and governance metrics, and aims to provide competitive returns while promoting responsible business practices. With low fees and a long track record of strong performance, this fund is a solid choice for ethical investors.
5. Domini Impact Equity Fund Investor Class
The Domini Impact Equity Fund is a unique offering in the world of ethical investing, as it focuses on companies that have a positive impact on society and the environment. This fund goes beyond traditional ESG criteria to target companies that are actively working to create positive change in the world. With a well-diversified portfolio and a commitment to sustainable investing principles, this fund is a standout option for investors who want to make a difference with their money.
6. TIAA-CREF Social Choice Bond Fund Retail Class
For investors looking to incorporate ethical investing principles into their fixed-income portfolio, the TIAA-CREF Social Choice Bond Fund is a top choice. This fund invests in bonds issued by companies that demonstrate strong environmental, social, and governance practices, as well as government agencies and municipalities that are committed to sustainability. With a focus on both financial returns and social impact, this fund is a great option for investors who want to invest responsibly across asset classes.
7. Green Century Balanced Fund Investor Class
Green Century is a leader in the field of environmentally responsible investing, and their Balanced Fund is a top performer in the space. This fund invests in a mix of stocks and bonds issued by companies that are leaders in environmental sustainability, as well as government agencies and municipalities that are committed to green initiatives. With a focus on both financial returns and positive impact, this fund offers investors a way to align their values with their investments.
In conclusion, ethical investment funds offer investors a way to support companies that align with their values while still achieving competitive financial returns. With a growing number of options available in the market, investors have more choices than ever when it comes to investing responsibly. By choosing one of the best ethical investment funds listed above, investors can make a positive impact on the world while building a diversified and profitable portfolio. Investing with a conscience has never been easier or more rewarding.