In recent years, ethical investing has become increasingly popular among investors who are looking to make a positive impact with their money. Ethical investment funds allow individuals to not only make a return on their investments but also support companies that are committed to socially responsible practices.
When selecting the best ethical investment funds, it is important to consider factors such as the fund’s investment goals, its track record, and the underlying companies it invests in. Here are some of the top ethical investment funds for 2021.
1. Vanguard FTSE Social Index Fund
The Vanguard FTSE Social Index Fund is a great option for investors looking to incorporate ethical considerations into their portfolio. This fund seeks to track the performance of the FTSE4Good US Select Index, which includes companies that meet certain environmental, social, and governance (ESG) criteria.
2. TIAA-CREF Social Choice Equity Fund
The TIAA-CREF Social Choice Equity Fund is another excellent choice for investors interested in ethical investing. This fund invests in companies that demonstrate positive environmental, social, and governance practices, while also seeking to achieve competitive financial returns.
3. Calvert Equity Fund
The Calvert Equity Fund is a well-established ethical investment fund that has been around for over 30 years. This fund focuses on companies that are committed to sustainable and responsible business practices, making it a solid choice for investors looking to align their values with their investments.
4. Parnassus Core Equity Fund
The Parnassus Core Equity Fund is a unique ethical investment fund that integrates ESG considerations into the investment process. This fund selects companies based on their positive impact on society, as well as their financial performance, making it a top choice for socially conscious investors.
5. Domini Impact Equity Fund
The Domini Impact Equity Fund is one of the oldest and most well-known ethical investment funds in the industry. This fund focuses on companies that are leaders in their industries in terms of sustainability and social responsibility, making it a great option for investors who prioritize impact alongside returns.
6. Green Century Balanced Fund
The Green Century Balanced Fund is a sustainable mutual fund that invests in a mix of stocks and bonds, with a focus on environmentally responsible companies. This fund is a top choice for investors looking to make a positive impact on the environment while earning competitive returns.
7. Impax Environmental Markets Fund
The Impax Environmental Markets Fund is a specialized ethical investment fund that focuses on companies involved in the transition to a more sustainable economy. This fund invests in companies that are pioneers in environmental technologies and solutions, making it a great choice for investors interested in supporting innovation in this space.
8. PAX Ellevate Global Women’s Leadership Fund
The PAX Ellevate Global Women’s Leadership Fund is a unique ethical investment fund that focuses on gender diversity and women’s leadership in the companies it invests in. This fund seeks to empower women in the workplace while also delivering strong financial performance, making it a compelling choice for investors who value gender equality.
9. Neuberger Berman Socially Responsive Fund
The Neuberger Berman Socially Responsive Fund is a well-diversified ethical investment fund that focuses on companies with strong ESG practices. This fund is managed by a team of seasoned professionals who actively engage with companies to promote responsible business practices, making it a top choice for socially conscious investors.
10. Allianz Global Investors SRI Equity Fund
The Allianz Global Investors SRI Equity Fund is an ethically focused mutual fund that invests in companies with high ESG ratings. This fund takes a global approach to ethical investing, making it a great option for investors looking to diversify their portfolios while supporting socially responsible companies.
In conclusion, ethical investment funds offer a way for investors to make a positive impact with their money while also potentially achieving financial returns. The top ethical investment funds for 2021 include a diverse range of options, from broad-based funds that focus on sustainable companies to specialized funds that target specific social or environmental goals. By investing in these funds, individuals can align their values with their financial goals and contribute to a more sustainable and responsible future.