Ethical investing, also known as socially responsible investing, has gained popularity in recent years as more and more investors are seeking to align their values with their financial goals. One way to do this is by investing in ethical funds, which are investment funds that prioritize companies and organizations with strong ethical practices and sustainable business models.
For socially responsible investors looking to make a positive impact while also growing their wealth, choosing the best ethical funds can be a daunting task. There are a wide variety of ethical funds available, each with its own investment strategy, risk profile, and performance track record. To help you navigate this complex landscape, we’ve compiled a list of some of the best ethical funds currently available.
1. Calvert Equity Portfolio (CSIEX)
The Calvert Equity Portfolio is a mutual fund that invests in companies that demonstrate strong environmental, social, and governance (ESG) practices. The fund seeks to provide long-term capital growth by investing in US companies of all sizes that meet Calvert’s strict ethical criteria. With a solid track record of outperformance compared to its benchmark index, the Calvert Equity Portfolio is a top pick for socially responsible investors.
2. TIAA-CREF Social Choice Equity Fund (TICRX)
The TIAA-CREF Social Choice Equity Fund is a socially responsible mutual fund that invests in companies that have a positive impact on society and the environment. The fund uses a multi-tiered screening process to identify companies with strong ESG practices and excludes those involved in controversial industries such as tobacco, weapons, and gambling. With a focus on sustainable investing and a commitment to ethical principles, the TIAA-CREF Social Choice Equity Fund is a great option for socially conscious investors.
3. Parnassus Core Equity Fund (PRBLX)
The Parnassus Core Equity Fund is a highly-rated socially responsible mutual fund that invests in a diversified portfolio of US companies with strong ESG practices. The fund’s investment approach integrates financial analysis with sustainability criteria to identify companies that are leaders in their industries and have a positive impact on society and the environment. With a history of strong performance and a focus on long-term sustainability, the Parnassus Core Equity Fund is a top choice for ethical investors.
4. Vanguard FTSE Social Index Fund (VFTSX)
The Vanguard FTSE Social Index Fund is an index mutual fund that tracks the performance of US stocks with strong ESG practices. The fund invests in companies that meet specific sustainability criteria and excludes those involved in controversial industries. With low fees, broad diversification, and a strong commitment to ethical investing, the Vanguard FTSE Social Index Fund is a great option for socially responsible investors looking to passively invest in a socially responsible manner.
5. Domini Impact Equity Fund (DSEFX)
The Domini Impact Equity Fund is a socially responsible mutual fund that invests in companies that have a positive impact on society and the environment. The fund follows a rigorous screening process to identify companies with strong ESG practices and excludes those involved in industries such as fossil fuels, weapons, and gambling. With a focus on impact investing and a commitment to sustainable development, the Domini Impact Equity Fund is a top choice for socially conscious investors.
In conclusion, ethical funds offer socially responsible investors the opportunity to align their values with their financial goals by investing in companies that prioritize ethical practices and sustainability. With a wide range of ethical funds available, investors have the opportunity to make a positive impact while also growing their wealth. The best ethical funds listed above are a great starting point for socially responsible investors looking to make a difference in the world through their investments.