As more and more investors prioritize sustainability and social responsibility in their investment choices, the demand for ethical funds has been steadily growing. Ethical funds, also known as socially responsible funds or sustainable funds, consider environmental, social, and corporate governance (ESG) factors in their investment decisions. These funds aim to generate returns while also making a positive impact on the world.
Investing in ethical funds allows individuals to align their financial goals with their values. From renewable energy to gender equality, ethical funds cover a wide range of social and environmental issues. In this article, we will highlight some of the top picks for the best ethical funds in 2021.
1. Calvert Equity Portfolio (CSIEX)
The Calvert Equity Portfolio is a well-established ethical fund that focuses on companies with strong ESG practices. This fund seeks long-term growth of capital by investing in companies that are leaders in environmental sustainability, social responsibility, and good governance. With a diversified portfolio of large-cap US stocks, the Calvert Equity Portfolio has outperformed its benchmark over the years.
2. Parnassus Core Equity Fund (PRBLX)
The Parnassus Core Equity Fund is another top pick for ethical investors. This fund looks for companies that are making a positive impact on society while delivering strong financial results. Parnassus Investments, the fund manager, integrates rigorous ESG analysis into their investment process. The fund’s portfolio consists of high-quality US companies that exhibit sustainable business practices.
3. TIAA-CREF Social Choice Bond Fund (TSBIX)
For investors looking to add fixed income investments to their ethical portfolio, the TIAA-CREF Social Choice Bond Fund is a great option. This fund invests in investment-grade bonds issued by entities that meet certain social responsibility criteria. The TSBIX fund focuses on issuers with strong ESG performance and aims to deliver competitive returns while making a positive impact.
4. Vanguard FTSE Social Index Fund (VFTSX)
The Vanguard FTSE Social Index Fund is a passively managed fund that tracks the performance of the FTSE4Good US Select Index. This index includes companies that meet certain ESG criteria, such as human rights, environmental sustainability, and ethical business practices. The VFTSX fund provides investors with exposure to socially responsible companies while maintaining a low expense ratio.
5. Domini Impact Equity Fund (DSEFX)
The Domini Impact Equity Fund is one of the oldest socially responsible funds in the US. This fund invests in companies that promote universal human dignity and environmental sustainability. Domini Impact Investments, the fund manager, conducts thorough ESG analysis to identify companies that align with their values. The DSEFX fund has a diversified portfolio of US stocks across various sectors.
6. Brown Advisory Sustainable Growth Fund (BIAWX)
The Brown Advisory Sustainable Growth Fund is a global equity fund that focuses on companies with strong growth potential and sustainable business practices. This fund seeks to invest in companies that are well-positioned to benefit from long-term ESG trends. With a nimble investment approach, the BIAWX fund looks for innovative companies that are addressing global challenges.
7. Shelton Greater China Fund (SGCFX)
For investors interested in ethical funds focused on international markets, the Shelton Greater China Fund is a standout choice. This fund invests in companies based in China, Hong Kong, and Taiwan that exhibit strong ESG practices. The SGCFX fund provides exposure to the fast-growing Chinese market while maintaining a commitment to ethical investing.
In conclusion, ethical funds offer investors the opportunity to make a positive impact on the world while achieving their financial goals. The funds mentioned above are just a few examples of the best ethical funds available in 2021. Before investing in any fund, it is essential to conduct thorough research and consider your own values and financial objectives. By incorporating ethical funds into your investment portfolio, you can contribute to a more sustainable and responsible future.
**best ethical funds**: Best Ethical Funds