In recent years, there has been a growing trend towards ethical investing, also known as socially responsible investing (SRI). This means investing in companies and funds that not only provide financial returns but also align with your values and beliefs. Ethical investment funds are designed to support companies that are committed to environmental sustainability, social responsibility, and good governance practices. In this guide, we will explore some of the top ethical investment funds available today.
1. **Vanguard FTSE Social Index Fund (VFTAX):** Vanguard is known for its low-cost index funds, and the Vanguard FTSE Social Index Fund is no exception. This fund tracks the FTSE4Good US Select Index, which includes companies that meet strict social and environmental criteria. With a low expense ratio and strong performance, this fund is a solid choice for investors seeking ethical investment options.
2. **Parnassus Core Equity Fund (PRBLX):** Parnassus Investments is a leader in the field of socially responsible investing, and their Core Equity Fund is a standout performer. The fund focuses on companies that are leaders in sustainability, diversity, and corporate responsibility. Parnassus has a rigorous screening process, ensuring that only the best companies make it into their portfolio.
3. **Calvert Equity Fund (CSIEX):** Calvert Investments is one of the oldest and most respected names in ethical investing. The Calvert Equity Fund screens companies based on environmental, social, and governance criteria, and has a long track record of outperformance. This fund is a good option for investors looking for a well-established and reputable ethical investment option.
4. **Green Century Balanced Fund (GCBLX):** Green Century Investments is a leader in environmentally focused investing. The Green Century Balanced Fund invests in companies that are leaders in sustainability and environmental stewardship. With a mix of stocks and bonds, this fund provides a balanced approach to ethical investing.
5. **Neuberger Berman Socially Responsive Fund (NBSRX):** Neuberger Berman is a global asset management firm that offers a range of socially responsible investment options. The Neuberger Berman Socially Responsive Fund screens companies based on environmental, social, and governance criteria, and has a strong track record of performance. This fund is a good choice for investors looking for a diversified ethical investment option.
6. **TIAA-CREF Social Choice Equity Fund (TISCX):** TIAA-CREF is a well-known provider of retirement plans and investment products, and their Social Choice Equity Fund is a top performer in the field of ethical investing. The fund focuses on companies that meet strict environmental, social, and governance criteria, and has a long track record of strong performance.
7. **Domini Impact Equity Fund (DSEFX):** The Domini Impact Equity Fund is one of the oldest and most respected ethical investment funds in the industry. Domini screens companies based on their social and environmental performance, and has a long history of outperformance. This fund is a good choice for investors seeking a long-term commitment to ethical investing.
8. **Ameritas ESG Mutual Funds:** Ameritas offers a range of ESG (environmental, social, and governance) mutual funds that cater to investors looking for ethical investment options. These funds focus on companies that are leaders in sustainability and corporate responsibility, and provide a solid foundation for a socially responsible investment strategy.
9. **Impax Environmental Markets Fund (IEMAX):** The Impax Environmental Markets Fund is a unique option for investors looking to capitalize on the growing trend towards environmental sustainability. The fund invests in companies that are at the forefront of the transition to a low-carbon economy, and has a strong track record of performance.
10. **Triodos Global Equity Impact Fund:** Triodos Bank is a pioneer in ethical banking, and their Global Equity Impact Fund is a top choice for socially responsible investors. The fund invests in companies that are making a positive impact on society and the environment, and has a strong track record of performance.
In conclusion, ethical investing is not just a passing trend – it is a responsible and sustainable approach to building wealth. By choosing one of the top ethical investment funds mentioned above, you can align your financial goals with your values and make a positive impact on the world. Start investing with a conscience today and reap the rewards of a more sustainable future.