- Investing
- Barbara Friedberg
- Updated : December 30th, 2021
Best Socially Conscious Investment Funds
Impact investing, socially responsible investing and socially conscious funds are all the rage. Millennial investors want to do good while they grow their investments for the future. The best socially conscious investment advisors are making it easy to do good with your investment dollars.
Pardon our dust! We’re updating this article!!
It’s easy to earn good investment returns and do good with your money. In fact, a University of Oxford study showed that 80% of 200 studies showed positive stock price performance with good sustainability practices.
“80% of the 200 studies reviewed showed that stock price performance is positively correlated with good sustainability practices” ~Study by the University of Oxford
Buy the Best Socially Conscious Investment Advisor
The easiest way to invest with your values while following a top impact investing advisor is to put your money in an impact investing or socially responsible fund. With over a thousand funds under the environmental, social and governance or ESG funds umbrella here’s some help wading through the available choices. ThinkAdvisor.comreported Morningstar’s list of top 10 performing ESG funds of 2017 (June 2016-June 2017).
Want a lower expense ratio for your socially conscious investing? Review Impact Investing Robo Advisors and Apps
1. Fidelity Select Environmental and Alternative Energy Portfolio (FSLEX)
1-year return (June to June): 31.3%
3-year annualized return: 7.9%
Size: $175 million
Mstar category: Industrials, Environmental Focus
Expense ratio: .94%
Most of the assets in this fund are invested in alternative and renewable energy, energy efficiency, pollution control, water infrastructure, waste and recycling technologies, or other environmental support services.
2. Parnassus Endeavor Investor (PARWX)
1-year return (June to June): 31.0%
3-year annualized return: 14.5%
Size: $4.38 billion
Mstar category: Large growth
Expense ratio: .95%
This fund avoids fossil fuel related firms and uses ESG metrics to invest in companies with good workplace environments.
3. Eventide Gilead N [ETGLX]
1-year return (June to June): 28.3%
3-year annualized return: 7.0%
Size: $1.37 billion
Mstar category: Mid-Cap Growth
Expense ratio: 1.43%
The mission of this fund is to find ethically governed firms that protect the environment and avoids sin stocks engaged in gambling, p*rnography, tobacco and alcohol, and weaponry.
4. Calvert Emerging Markets Equity I (CVMIX)
1-year return (June to June): 28.0%
3-year annualized return: 5.1%
Size: $213 million
Mstar category: Diversified Emerging Markets
Expense ratio: .92%
This developing world fund chooses companies that address one or more global sustainability issues including development, poverty and health, environment and climate change, and rights and governance.
5. Calvert International Opportunities I (COIIX)
1-year return (June to June): 27.5%
3-year annualized return: 4.2%
Size: $190 million
Mstar category: Foreign Small/Mid Blend
Expense ratio: 1.16%
This fund is guided by the Calvert Principles for Responsible Investment and considers environmental, social and governance factors.
Bonus:Should I Sell Stocks, Now That Markets Are Peaking?
6. Parnassus (PARNX)
1-year return (June to June): 26.3%
3-year annualized return: 9.7%
Size: $1 billion
Mstar category: Large Growth
Expense ratio: .86%
Parnassus avoids the fossil fuel industry while giving a nod to all ESG factors.
7. Ariel Fund Investor (ARGFX)
1-year return (June to June): 26.1%
3-year annualized return: 7.6%
Size: $2.2 billion
Mstar category: Mid-cap value
Expense ratio: 1.02%
No gun or alcohol-related companies in this fund.
8. Eventide Healthcare & Life Sciences I (ETIHX)
1-year return (June to June): 25.4%
3-year annualized return: 10.8%
Size: $365 million
Mstar category: Health
Expense ratio: 1.35%
ETIHX goes for ethically governed companies and those that protect the environment. No gambling, p*rnography, tobacco, alcohol or weapon-related companies in this fund.
9. Invesco Summit P (SMMIX)
1-year return (June to June): 24.6%
3-year annualized return: 10.4%
Size: $2 billion
Mstar category: Large Growth
Expense ratio: .90%
This fund rules out tobacco, gambling and alcohol firms.
10. American Century NT Emerging Markets Institutional (ACLKX)
1-year return (June 2016-2017): 24.2%
3-year annualized return: 4.2%
Size: $471 million
Morningstar category: Diversified Emerging Markets
Expense Ratio: 1.19%
No tobacco stocks in this fund.
Learn: How Does Mark Cuban Invest?
These socially conscious mutual funds are worth a look if you’re seeking to save the planet or avoid sin stocks, but you might also want to consider socially responsible ETFs. These ESG funds typically sport lower annual fees and can be traded on major stock exchanges throughout the day. Although top performing funds are a good place for investment ideas, one year’s winner isn’t guaranteed to continue outperforming the rest in the coming years.
Best Socially Conscious Investment Advisors Might be Robots
If you’re interested in access to additional investment portfolio management then you might consider an advisor with ESG options such associally conscious robo advisor M1 Finance. This unique investment platform combines DIY investing with digital portfolio management.
One of the legacy robo-advisor, Betterment is now adding ESG investing to its robust platform.After adding access to human advisors, Betterment now offers socially responsible, impact investing options to its investors. Betterment’s basic fee is a reasonable 0.25% of AUM.
Motif, another combination DIY and digital investment advisor offers access to socially responsible investing. Check out the Motif impact investing features.
If you want to do good with your investments there are a variety of ways to uncover thebest socially conscious investment advisors. Whether you’re seeking a mutual or exchange traded fund, a robo adviser or a human advisor, there are many ways to invest with your heart.
Barbara Friedberg
Expert investor, former portfolio manager and university finance instructor. Author, Personal Finance; An Encyclopedia of Modern Money Management. Writer, U.S. News & World Report, Forbes Advisor and Investopedia. Teach savvy professionals how to invest to build wealth. Publisher, Barbara Friedberg Personal Finance.com
All Posts
1 thought on “Best Socially Conscious Investment Advisors”
Stephen
May 12, 2023 at 4:13 pm
Perhaps you should post something relevant like returns for the past year or two, 2016-2017 is not indicative of real returns
Reply
