Invest Wisely in Good Energy
(this is NOT investment advice, we’re just saying make your money count when you invest)
7 Socially Responsible Funds
Americans are increasingly focused on ensuring their money aligns with their ethical values. A report by KPMG shows that 37% of American consumers take environmental sustainability into account when making purchases, and 33% consider social responsibility.
From this article: https://money.usnews.com/investing/articles/best-socially-responsible-funds#:~:text=If%20you’re%20among%20those,0.67%25
When it comes to investing, these figures are even more striking. A 2022 study found that nearly 9 out of 10 investors prioritize socially responsible strategies, particularly as they plan for retirement. This trend is growing stronger each year, signaling its long-term impact.
If you’re looking to invest both profitably and ethically, consider these socially responsible funds:
| Socially Responsible Fund | Assets Under Management | Expense Ratio |
|---|---|---|
| iShares ESG Aware MSCI USA ETF (ESGU) | $12.7 billion | 0.15% |
| iShares Global Clean Energy ETF (ICLN) | $2.4 billion | 0.41% |
| Putnam Sustainable Leaders (PNOPX) | $6.4 billion | 0.92% |
| TIAA-CREF Social Choice Equity (TICRX) | $6.4 billion | 0.46% |
| Parnassus Mid Cap Fund (PARMX) | $3.7 billion | 0.96% |
| iShares ESG Aware MSCI EAFE ETF (ESGD) | $8.1 billion | 0.20% |
| Invesco Solar ETF (TAN) | $1.3 billion | 0.67% |
Fund Highlights
iShares ESG Aware MSCI USA ETF (ESGU)
- Assets under management: $12.7 billion
- Expense ratio: 0.15% ($15 annually on $10,000 invested)
If you’re seeking large-cap stocks with a socially responsible edge, ESGU is a great starting point. This fund is the largest on the list and offers the lowest annual fees. With a single share priced at just over $100, it provides access to around 300 U.S. companies that meet favorable environmental, social, and governance (ESG) criteria, including giants like Microsoft (MSFT) and Nvidia (NVDA). Unlike more niche funds, ESGU isn’t focused solely on clean energy or specific sectors—it invests in companies that outperform their peers in social responsibility.
iShares Global Clean Energy ETF (ICLN)
- Assets under management: $2.4 billion
- Expense ratio: 0.41% ($41 annually on $10,000 invested)
For those looking to invest directly in clean energy, ICLN is an excellent choice. Launched in 2008, it has a long track record of focusing on decarbonization and climate action. The fund holds around 100 companies, including First Solar (FSLR) and Vestas Wind Systems (VWDRY). With about 40% of its holdings in U.S. firms and significant investments in China and Denmark, ICLN provides a globally diversified approach to alternative energy.