In recent years, there has been a growing trend towards ethical investing More and more investors are looking for opportunities to align their financial goals with their values, seeking out companies that have a positive impact on the world This trend has given rise to a new category of investment funds known as ethical funds These funds allow investors to put their money into companies that are making a difference, whether it be through environmental sustainability, social responsibility, or good governance practices.
As the demand for ethical funds continues to rise, it can be overwhelming to sift through the myriad options available To help investors navigate this rapidly growing market, we have compiled a list of the top ethical funds of 2021 These funds have shown consistent performance while adhering to high ethical standards, making them attractive options for socially conscious investors.
1 Vanguard FTSE Social Index Fund Investor Shares (VFTSX)
The Vanguard FTSE Social Index Fund Investor Shares is a standout choice for investors looking for a low-cost, diversified ethical fund This fund tracks the performance of the FTSE4Good US Select Index, which includes companies that meet stringent social and environmental criteria With an expense ratio of just 0.19%, this fund offers investors a cost-effective way to invest in socially responsible companies.
2 Calvert Equity Fund (CSIEX)
The Calvert Equity Fund is another top pick for ethical investors, offering a focused portfolio of companies that adhere to high environmental, social, and governance (ESG) standards This fund has a long track record of outperforming its peers while maintaining a strong commitment to ethical investing With a focus on high-quality companies that are leaders in sustainability, the Calvert Equity Fund is a solid choice for investors seeking both financial returns and positive social impact.
3 Parnassus Endeavor Fund (PARWX)
The Parnassus Endeavor Fund is a unique ethical fund that takes a values-based approach to investing This fund looks for companies with strong environmental, social, and governance practices, as well as a commitment to workplace diversity and inclusion best ethical funds. The Parnassus Endeavor Fund has a concentrated portfolio of just 30 holdings, allowing it to focus on high-conviction investments that align with its ethical criteria With a strong track record of outperformance and a commitment to social responsibility, this fund is a top choice for ethical investors.
4 TIAA-CREF Social Choice Equity Fund (TICRX)
The TIAA-CREF Social Choice Equity Fund is a well-rounded ethical fund that integrates ESG factors into its investment process This fund invests in companies that have a positive impact on society while delivering competitive financial returns With a focus on companies that are leaders in sustainability and social responsibility, the TIAA-CREF Social Choice Equity Fund offers investors a way to align their values with their investment goals.
5 Domini Impact Equity Fund (DSEFX)
The Domini Impact Equity Fund is a pioneer in the field of ethical investing, with a long history of investing in companies that promote positive social and environmental change This fund seeks out companies that are making a difference in areas such as renewable energy, fair labor practices, and community development With a strong commitment to ethical investing and a proven track record of performance, the Domini Impact Equity Fund is a top choice for investors looking to make a positive impact with their money.
As the demand for ethical funds continues to grow, investors have a wide range of options to choose from Whether you are looking for a low-cost, diversified fund like the Vanguard FTSE Social Index Fund or a values-based fund like the Parnassus Endeavor Fund, there are plenty of choices available to help you align your financial goals with your values By investing in the top ethical funds of 2021, you can support companies that are making a difference in the world while potentially earning competitive financial returns With so many options to choose from, there has never been a better time to invest ethically and make a positive impact on society