Exchange traded fund (ETF) investing isn’t just solely for investing in sectors you find appealing or for capitalizing on the hottest commodity trends. They can also be a way to invest in companies whose missions and records on key social issues you support.
Socially responsible investing is a fairly new concept, and it involves investing in companies that have clean records regarding environmental and social issues. These ETFs allow you to invest only in companies that you can believe in or trust on certain issues, explains Selena Maranjian for The Motley Fool.
Some of these funds include:
- iShares KLD 400 Social index Fund (DSI): Looks for companies with good records on social, environmental and governance matters. Top holdings include Microsoft (MSFT), Procter & Gamble (PG) and IBM (IBM). Up 4.8% year-to-date.
- iShares KLD Select Social Index Fund (KLD): Seeks companies strong on social, environmental and governance matters and many are prominent S&P components. Top holdings include Johnson & Johnson (JNJ), Pepsico (PEP) and General Mills (GIS).
For more stories on socially repsonsible funds, visit our socially responsible category.
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.