In today’s world, many investors are becoming more conscious of the impact their money can have on the world. As a result, there has been a rise in popularity of ethical investment funds, also known as socially responsible investment funds. These funds allow investors to put their money into companies that align with their ethical values while still seeking financial returns on their investment.
For those looking to invest in ethical funds, it can be overwhelming to navigate the multitude of options available on the market. To help make the decision easier, we have compiled a list of some of the best ethical investment funds for socially responsible investors.
1. Vanguard FTSE Social Index Fund Investor Shares (VFTSX)
Vanguard is known for offering low-cost index funds, and their FTSE Social Index Fund is one of the top ethical investment options. This fund tracks the performance of the FTSE4Good US Select Index, which includes companies with strong environmental, social, and governance (ESG) practices. With a low expense ratio and a solid track record, this fund is a great option for those looking to invest ethically.
2. Calvert Equity Fund (CSIEX)
The Calvert Equity Fund is another popular choice for socially responsible investors. This fund invests in companies that demonstrate strong ESG practices and screens out those that don’t meet their criteria. Calvert has a long history of focusing on sustainable investing, making this fund a reliable option for those looking to align their investments with their values.
3. Parnassus Core Equity Fund (PRBLX)
Parnassus Investments is known for its commitment to sustainable and socially responsible investing, and their Core Equity Fund is a shining example of this dedication. This fund invests in companies that demonstrate strong ESG practices and avoid those that do not meet their criteria. With a solid track record and a focus on long-term sustainability, this fund is a great option for those looking to invest ethically.
4. TIAA-CREF Social Choice Equity Fund (TISCX)
The TIAA-CREF Social Choice Equity Fund is another top choice for socially responsible investors. This fund invests in companies that demonstrate strong ESG practices and engages in shareholder activism to promote positive change. With a low expense ratio and a focus on long-term sustainability, this fund is a solid option for those looking to invest ethically.
5. Domini Impact Equity Fund (DSEFX)
Domini Impact Investments is a pioneer in the field of socially responsible investing, and their Impact Equity Fund is one of the best options on the market. This fund invests in companies that meet their strict ESG criteria and actively engages with companies to promote positive change. With a long history of sustainable investing and a focus on impact, this fund is a top choice for socially responsible investors.
6. TIAA-CREF Social Choice International Equity Fund (TIEIX)
For those looking to diversify their ethical investment portfolio internationally, the TIAA-CREF Social Choice International Equity Fund is a great option. This fund invests in companies outside of the United States that demonstrate strong ESG practices and engages in shareholder activism to promote positive change. With a focus on international sustainability and a solid track record, this fund is a solid choice for socially responsible investors.
Investing in ethical funds is a great way for investors to align their money with their values while still seeking financial returns. By choosing one of the best ethical investment funds listed above, investors can feel confident that their money is being put to good use and making a positive impact on the world.
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