Investing in ethical funds has become increasingly popular among investors who want to align their financial goals with their values. These funds not only offer the potential for solid returns, but also allow investors to make a positive impact on society and the environment. In 2021, there are several ethical funds that stand out for their performance and commitment to responsible investing. Let’s take a closer look at some of the best ethical funds that are making waves this year.
One of the top performing ethical funds in 2021 is the Calvert Equity Fund (CSIEX). This fund has a long-standing track record of investing in companies that demonstrate strong environmental, social, and governance (ESG) practices. The fund focuses on companies that are leaders in their industries and meet stringent ESG criteria. With a diversified portfolio of large-cap U.S. companies, the Calvert Equity Fund has seen impressive returns this year, outperforming the S&P 500 index.
Another standout ethical fund is the Parnassus Core Equity Fund (PRBLX). This fund is known for its rigorous screening process, which identifies companies with positive ESG practices and strong financial performance. The Parnassus Core Equity Fund has a mix of large-cap and mid-cap U.S. stocks, providing investors with a well-balanced portfolio that prioritizes sustainability and ethical business practices. In 2021, the fund has delivered solid returns, making it a popular choice among socially responsible investors.
Investors interested in global ethical investing may consider the TIAA-CREF Social Choice International Equity Fund (TISCX). This fund focuses on international companies that demonstrate high ESG standards and have a positive impact on society and the environment. With a diverse portfolio of foreign stocks, the TIAA-CREF Social Choice International Equity Fund offers exposure to emerging markets and developed economies alike. In 2021, the fund has shown strong performance, making it a top pick for investors seeking ethical investments beyond U.S. borders.
For investors looking to make a difference in the bond market, the PAX Core Bond Fund (PXWAX) is a top choice. This fund invests in investment-grade fixed income securities issued by companies that meet strict ESG criteria. The PAX Core Bond Fund focuses on green bonds, social bonds, and sustainability-linked bonds, offering investors an opportunity to support companies that are committed to sustainability and responsible business practices. In 2021, the fund has performed well, providing investors with competitive returns while promoting ethical investing in the fixed income market.
In addition to traditional mutual funds, investors can also explore exchange-traded funds (ETFs) that focus on ethical investing. One such ETF is the iShares MSCI KLD 400 Social ETF (DSI). This fund invests in U.S. companies that have high ESG ratings and meet specific sustainability criteria. The iShares MSCI KLD 400 Social ETF has a diverse portfolio of large and mid-cap stocks, providing investors with exposure to companies that prioritize ethical behaviors and social responsibility. In 2021, the fund has delivered strong returns, making it a top choice for investors seeking a socially responsible ETF.
In summary, ethical investing offers investors an opportunity to make a positive impact on society and the environment while potentially earning solid returns. In 2021, there are several ethical funds that stand out for their performance and commitment to responsible investing. From the Calvert Equity Fund to the iShares MSCI KLD 400 Social ETF, these funds provide investors with a range of options to align their financial goals with their values. Whether investing in U.S. companies or international stocks, there are plenty of opportunities to build a well-rounded portfolio that promotes sustainability and ethical business practices. By choosing the best ethical funds, investors can make a difference in the world while achieving their financial goals.