In recent years, ethical investing has gained popularity as more people seek to align their values with their financial goals. As a result, the market for ethical funds has grown significantly, offering investors a wide range of options to choose from. Ethical funds, also known as socially responsible funds or sustainable funds, are investment options that prioritize environmental, social, and governance (ESG) criteria in addition to financial returns. These funds support companies that make positive social and environmental impacts, while also generating competitive returns for investors.
For investors looking to make a positive impact with their money, ethical funds are a great way to do so. By investing in companies that value sustainability, diversity, and ethical business practices, investors can help drive positive change while also potentially earning solid returns on their investment. With the growing interest in ethical investing, there are now more options than ever for investors to choose from. Here, we highlight some of the best ethical funds of 2021.
1. Vanguard FTSE Social Index Fund Investor Shares (VFTSX)
Vanguard is known for its low-cost index funds, and the Vanguard FTSE Social Index Fund is no exception. This fund tracks the performance of the FTSE4Good US Select Index, which includes companies that meet specific ESG criteria. With a low expense ratio and a diversified portfolio of socially responsible companies, this fund is a great option for investors looking to align their values with their investments.
2. Calvert Equity Fund (CSIEX)
The Calvert Equity Fund is one of the oldest socially responsible mutual funds in the market, with a track record of generating competitive returns while also prioritizing ESG factors. This fund invests in companies that demonstrate positive social and environmental practices, making it a popular choice among ethical investors. With a solid performance history and a commitment to sustainability, the Calvert Equity Fund is a top pick for ethical investors.
3. Parnassus Core Equity Fund (PRBLX)
The Parnassus Core Equity Fund is another standout option for ethical investors, with a focus on companies that demonstrate strong ESG practices. This fund has a long history of outperforming its benchmark while also prioritizing sustainable and responsible investing. With a diversified portfolio of companies that prioritize sustainability, diversity, and ethical business practices, the Parnassus Core Equity Fund is a top choice for investors looking to make a positive impact with their money.
4. TIAA-CREF Social Choice Equity Fund (TISCX)
The TIAA-CREF Social Choice Equity Fund is a solid option for investors looking to invest in socially responsible companies. This fund invests in companies that meet specific ESG criteria, while also generating competitive returns for investors. With a focus on sustainability, diversity, and ethical business practices, the TIAA-CREF Social Choice Equity Fund offers investors a way to make a positive impact with their money.
5. Domini Impact Equity Fund (DSEFX)
The Domini Impact Equity Fund is a popular choice for investors looking to invest in companies that prioritize sustainability and social responsibility. This fund screens companies based on specific ESG criteria, while also seeking to generate competitive returns for investors. With a focus on positive social and environmental impacts, the Domini Impact Equity Fund is a solid option for investors looking to align their values with their investments.
In conclusion, ethical investing has grown significantly in recent years, offering investors a wide range of options to choose from. The best ethical funds of 2021 prioritize sustainability, diversity, and ethical business practices, while also generating competitive returns for investors. Whether you’re looking to make a positive impact with your money or simply want to align your values with your investments, there are plenty of ethical funds to choose from. By investing in companies that value sustainability and social responsibility, you can help drive positive change while also potentially earning solid returns on your investment. Consider the top ethical funds of 2021 for your investment portfolio and make a positive impact with your money.