Whether you invest for the returns or for peace of mind, there are socially responsible exchange traded fund (ETF) options available and more coming. Barclay’s Global Investors has iShares KLD Select Social Index Fund (KLD), which is broadly diverse, and PowerShares has WilderHill Clean Energy Portfolio (PBW).
KLD has $61 million in assets and year-to-date return of 11%. The ETF consists of 300-350 companies from the S&P 500 and Russell 1000 and seeks to maximize exposure to large capitalization companies that have positive social and environmental attributes.
PBW has $650 million in assets and returns at 12%. PBW is more condensed with 43 holdings and a focus on companies that support renewable and cleaner energy options. According to Zoe Van Schyndel, PBW’s stocks are directly affected by energy prices.
The new ones include PowerShares Cleantech Portfolio (PZD), which invests in companies that improve operational performance, productivity or efficiency, while reducing costs, inputs, energy consumption, waste or pollution. The other is iShares KLD 400 Social Index Fund which will track the Domini Social Index.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.