In today’s world, more and more investors are looking to put their money where their values are. This has led to a rise in popularity of ethical funds, also known as socially responsible investing (SRI) funds. These funds allow investors to support companies that prioritize environmental, social, and governance (ESG) criteria while still seeking to deliver solid returns.
If you’re looking to invest in ethical funds, it’s important to do your research and choose funds that align with your values. To help you get started, we’ve compiled a list of some of the best ethical funds of 2021.
1. Calvert Equity Fund (CSIEX)
One of the top ethical funds on the market is the Calvert Equity Fund. This fund focuses on companies that have strong ESG practices and aims to provide long-term capital appreciation. The fund is managed by Calvert Research and Management, a leader in responsible investing.
2. Parnassus Core Equity Fund (PRBLX)
The Parnassus Core Equity Fund is another standout ethical fund. This fund seeks to invest in companies that are leaders in sustainability and corporate responsibility. The fund has a long track record of outperforming its peers while staying true to its ethical investing principles.
3. TIAA-CREF Social Choice Equity Fund (TICRX)
For investors looking to align their values with their investments, the TIAA-CREF Social Choice Equity Fund is a great option. This fund screens out companies involved in controversial industries such as alcohol, tobacco, and weapons. It also focuses on companies with strong ESG practices and positive social impact.
4. Domini Impact Equity Fund (DSEFX)
The Domini Impact Equity Fund is a pioneer in ethical investing, with a focus on environmental sustainability, social responsibility, and corporate governance. The fund seeks to invest in companies that are making a positive impact on society while also delivering competitive returns for investors.
5. Vanguard FTSE Social Index Fund (VFTSX)
Vanguard is known for its low-cost index funds, and the Vanguard FTSE Social Index Fund is no exception. This fund tracks the performance of the FTSE4Good US Select Index, which includes companies that meet certain ESG criteria. The fund provides a low-cost way for investors to align their investments with their values.
6. TIAA-CREF ESG International Equity Fund (TEQIX)
For investors looking to diversify their ethical investments beyond the US market, the TIAA-CREF ESG International Equity Fund is a great option. This fund focuses on companies outside of the US that have strong ESG practices and positive social impact. It offers investors exposure to international markets while still prioritizing ethical considerations.
7. Green Century Balanced Fund (GCBLX)
The Green Century Balanced Fund is a unique ethical fund that focuses on both sustainable investing and shareholder advocacy. The fund invests in companies that are leaders in environmental sustainability while also engaging with companies to promote positive change. The fund offers a balanced approach to investing that appeals to socially conscious investors.
Investing in ethical funds allows investors to make a positive impact on the world while still seeking to achieve their financial goals. By choosing funds that prioritize ESG criteria and promote responsible investing, investors can align their investments with their values and contribute to a more sustainable future.
Whether you’re new to ethical investing or a seasoned pro, the funds listed above offer a range of options for investors looking to build a socially responsible portfolio. Before investing in any fund, be sure to carefully review its investment objectives, performance history, and fees to ensure it aligns with your financial goals and values.
In conclusion, ethical investing is not only a way to support companies that are making a positive impact on society and the environment, but also a way to potentially achieve competitive returns. By investing in the best ethical funds of 2021, you can build a portfolio that reflects your values and contributes to a more sustainable future for all. Consider incorporating ethical funds into your investment strategy and help create a better world for future generations.