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5 Socially Responsible Investment Funds

Financial sustainability is an important part of any portfolio. That’s why it’s worth considering investing in a socially responsible fund. A socially responsible mutual fund seeks to invest in companies with good corporate governance, promote human rights, protect the environment, and create sustainable practices.  

Socially responsible investment funds are investment funds​​ that support certain social or environmental causes. These investments can be a great way for investors to put their money to work supporting the causes they care about. 

These funds can make you feel good about your investment choices and help you meet your financial goals simultaneously! Here are five Socially Responsible Investment Funds that you might want to consider: 

1. Betterment 

Betterment is a robo-advisor that manages your investment portfolio for you. It offers socially responsible investment options, which are portfolios that focus on companies with positive environmental and social impacts. These ETFs are diversified, low-cost, and professionally managed–all things you can expect from Betterment’s other offerings. 

2. SVX 

The SVX fund is a socially responsible investment fund that invests in companies that meet certain social, environmental, and governance criteria. It’s been managed by Calvert Group, a leader in sustainable investing since 1976. 

The expense ratio of SVX is 0.75%, which is lower than the average expense ratio for mutual funds (1%). The fund has outperformed its benchmark index over the past three years by an average annual return of 1%. 

3. Vanguard FTSE Social Index Fund Investor Shares (VFTSX) 

VFTSX is a passively managed index fund that seeks to track the FTSE Social Index, including companies selected by an independent third party as having high social and environmental standards. It has no ongoing charges or fees and can reinvest dividends without paying commissions or fees.

The ​fund aims​​​ to provide investment results corresponding to its benchmark index’s total return performance. ​A low​​​ turnover rate reduces trading activity within an investment portfolio, reducing transaction fees and taxes. Lower-turnover funds tend to lower risk profiles over longer periods due to their reduced volatility levels. 

4. Parnassus Mid-Cap (PARMX) 

Parnassus Mid-Cap is a socially responsible investment fund that has a ratio of 1.30% and has returned an annualized 14% over the past five years. It invests primarily in companies with high employee satisfaction scores and provides equal pay opportunities for women and minorities​. It​​​ also ​screens​​​ out companies involved in tobacco or weapons manufacturing or whose products include alcohol or gambling content. 

5. Invesco ESG NASDAQ 100 ETF (QQMG) 

QQMG is an exchange-traded fund that tracks the performance of the Nasdaq 100 index. It invests in 100 companies chosen based on their environmental, social, and governance practices​​ and is passively managed with no trading activity. The expense ratio is 0.25%, which is low than other mutual funds and ETFs. 

Invest In Companies That Do Good 

There are many ways to invest in socially responsible companies, but not all will give you the returns you need. The five funds listed above are some of the best options available today for investors who want to do good while doing well for themselves. 

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