Invest in ways that support your values with ethical Exchange Traded Funds (ETFs) and community investments.
If you’re looking to make some investments, but don’t want to compromise your principles, you don’t have to. There are ways investors can use their money for good while also making good money. Here are a couple ways to identify investments that match your values.
Ethical ETFs
ETF stands for exchange traded fund. They’re a kind of mutual fund people can buy and sell shares in. There are all kinds of ETFs, from those that focus on a specific sector to those that seek a certain level of fixed income.
There are also ethically focused ETFs. For example, the largest such fund is Barclay’s Women in Leadership fund (WIL). This fund targets companies that have a higher number of women in leadership roles, and it currently has about $30 million in assets under management.
There are other, similar funds, like those that target low carbon emission companies, or those that adhere to certain religious values and exclude alcohol or tobacco companies. Whatever your ethical stance is, there’s an ethical ETF that can help you invest according to your principles.
Unfortunately, these funds have trailed behind their peers in the recent market rally. Their limited exposure shields them from market declines, but it also prevents them from taking full advantage of rallies.
Community Investment
Perhaps you’re more concerned with improving your own community. The opportunity exists for you to do just that, through community investment.
As a member of Partner Colorado, you make it possible for us to make loans to small businesses and individuals right here in the community. Just by opening a certificate or putting a larger deposit in your share account, you enable your credit union to finance projects that make our community a better place. Unlike the alternatives, community investment bears little risk. You still get a return in the form of interest and the knowledge that you’re investing according to your values.
Investing in what you care about can give you a sense of purpose and make you feel like you’re investing your money in something important. If you’re curious to see the long-term impact of investing, you can check out our online Investing Calculator. It may surprise you how much more you could accumulate in savings just by repositioning your assets and investing to achieve a higher return.
SOURCES:
http://www.etf.com/sections/features-and-news/top-5-socially-responsible-etfs?nopaging=1
http://www.kiplinger.com/article/investing/T041-C000-S002-the-7-top-funds-for-ethical-investing.html
http://www.greenamerica.org/socialinvesting/communityinvesting/whattoknow/index.cfm
