In today’s world, more and more investors are looking for ways to align their financial goals with their ethical values. This has led to a rise in the popularity of ethical funds, also known as socially responsible investing (SRI) funds, which allow investors to support companies that are making a positive impact on the world.
These funds typically screen out companies involved in controversial industries such as tobacco, weapons, or fossil fuels, and instead focus on businesses that promote environmental sustainability, social justice, and good governance practices. With the growing interest in ethical investing, there are now more options than ever for investors looking to make a positive impact with their money.
Here, we will explore some of the top ethical funds of 2021, looking at their performance, investment strategies, and the positive impact they are making in the world.
1. **Vanguard FTSE Social Index Fund (VFTSX)**
The Vanguard FTSE Social Index Fund is a popular choice for investors looking to invest in socially responsible companies. This fund tracks the performance of the FTSE4Good US Select Index, which includes companies that meet certain environmental, social, and governance criteria. With a low expense ratio and strong historical performance, this fund is a solid choice for investors looking to align their investments with their values.
2. **Parnassus Core Equity Fund (PRBLX)**
The Parnassus Core Equity Fund is another top-performing ethical fund that screens out companies involved in controversial industries. This fund takes a holistic approach to investing, focusing on companies that demonstrate strong environmental policies, social responsibility, and ethical business practices. With a long-term track record of outperforming the market, this fund is a favorite among ethical investors.
3. **Calvert Equity Fund (CSIEX)**
The Calvert Equity Fund is a socially responsible fund that takes a proactive approach to investing in companies that have a positive impact on society. This fund applies strict environmental, social, and governance criteria when selecting companies for its portfolio, and aims to invest in businesses that are making a difference in the world. With a diversified portfolio and strong historical performance, the Calvert Equity Fund is a top choice for investors looking to make a positive impact with their investments.
4. **TIAA-CREF Social Choice Equity Fund (TISCX)**
The TIAA-CREF Social Choice Equity Fund is another top ethical fund that screens out companies involved in controversial industries. This fund focuses on investing in companies that demonstrate strong environmental, social, and governance practices, and aims to promote positive change in the world. With a solid track record of outperforming the market, this fund is a great option for investors looking to align their investments with their values.
5. **iShares MSCI KLD 400 Social ETF (DSI)**
For investors looking for a low-cost, diversified ethical fund, the iShares MSCI KLD 400 Social ETF is a great option. This fund tracks the performance of the MSCI KLD 400 Social Index, which includes companies that meet certain environmental, social, and governance criteria. With a low expense ratio and strong historical performance, this fund is a popular choice for investors looking to invest in socially responsible companies.
In conclusion, ethical funds are a great way for investors to align their financial goals with their ethical values. With a wide range of options available, investors can choose from funds that screen out controversial industries, promote environmental sustainability, and support social justice initiatives. By investing in ethical funds, investors can make a positive impact on the world while still achieving their financial goals.
To learn more about the best ethical funds, make sure to do your research and consult with a financial advisor to find the right fund for your investment goals. Investing in ethical funds not only allows you to grow your wealth, but also contribute to a better future for our planet and society.