In today’s world, more and more investors are looking to align their values with their investment decisions. This has led to the rise in popularity of ethical funds, also known as socially responsible investing (SRI) funds. These funds not only aim to provide a financial return for investors but also take into account environmental, social, and governance (ESG) factors.
For those looking to invest in ethical funds, it can be overwhelming to navigate through the plethora of options available in the market. To help you make an informed decision, we have compiled a list of top ethical funds that have been performing well while staying true to their ethical principles.
1. Calvert Equity Fund (CSIEX)
Calvert Equity Fund has been a pioneer in the field of ethical investing since its inception in 1982. The fund focuses on companies that exhibit strong environmental, social, and governance practices while also maintaining a solid financial performance. With a long track record of outperforming its benchmark, this fund is a top choice for investors looking to invest with a conscience.
2. Parnassus Core Equity Fund (PRBLX)
Parnassus Core Equity Fund is another standout ethical fund that has consistently delivered strong returns to its investors. The fund follows a rigorous screening process to select companies that are leaders in sustainability practices and have a positive impact on society. With low fees and a diversified portfolio, this fund is a solid choice for investors seeking both financial returns and social impact.
3. TIAA-CREF Social Choice Equity Fund (TISCX)
TIAA-CREF Social Choice Equity Fund is a well-known ethical fund that incorporates ESG criteria into its investment process. The fund invests in companies that are committed to social responsibility, environmental sustainability, and good corporate governance. With a focus on long-term growth and positive societal impact, this fund is a top performer in the ethical investing space.
4. Domini Impact Equity Fund (DSEFX)
Domini Impact Equity Fund is a unique ethical fund that utilizes a holistic approach to investing. The fund not only screens out companies involved in controversial industries such as weapons, tobacco, and fossil fuels but also actively seeks out companies that are making a positive impact on society. With a long-term perspective and a commitment to sustainability, this fund is a top choice for socially conscious investors.
5. Vanguard FTSE Social Index Fund (VFTSX)
Vanguard FTSE Social Index Fund is a passively managed ethical fund that tracks the performance of the FTSE4Good US Select Index. The fund invests in companies that meet certain ESG criteria and excludes those involved in controversial industries. With a low expense ratio and a diversified portfolio, this fund offers investors a low-cost way to invest in socially responsible companies.
In conclusion, ethical funds offer investors the opportunity to align their values with their investment decisions while still achieving competitive financial returns. By selecting top ethical funds like Calvert Equity Fund, Parnassus Core Equity Fund, TIAA-CREF Social Choice Equity Fund, Domini Impact Equity Fund, and Vanguard FTSE Social Index Fund, investors can feel confident that their money is being put to good use. Whether you are passionate about the environment, social justice, or corporate governance, there is an ethical fund out there for you. Invest with a conscience and make a positive impact on the world with these top ethical funds.