In today’s society, there is a growing emphasis on ethical investing. This trend has resulted in an increasing number of investors looking for ways to align their investment portfolios with their personal values. Many investors are now seeking out ethical funds, which are investment vehicles that only invest in companies that meet certain ethical criteria.
Ethical funds, also known as socially responsible funds or sustainable funds, are investment funds that not only aim to provide financial returns for investors but also seek to make a positive impact on society and the environment. These funds typically avoid investing in companies that are involved in industries such as tobacco, alcohol, weapons, and fossil fuels, among others.
With the surge in popularity of ethical investing, there are now a wide variety of ethical funds available on the market. However, not all ethical funds are created equal, and some perform better than others. In this article, we will explore some of the top performing ethical funds for 2021.
1. Impax Environmental Markets (IEM)
One of the best-performing ethical funds in 2021 is the Impax Environmental Markets (IEM) fund. This fund focuses on investing in companies that are involved in environmental technologies and services. The fund has a strong track record of delivering solid returns to investors while also making a positive impact on the environment. In 2021, the IEM fund has outperformed many of its peers, making it a top choice for investors looking to add an ethical fund to their portfolio.
2. Parnassus Core Equity Fund (PRBLX)
The Parnassus Core Equity Fund (PRBLX) is another top-performing ethical fund for 2021. This fund is managed by Parnassus Investments, a firm that specializes in socially responsible investing. The PRBLX fund focuses on investing in companies that have strong environmental, social, and governance (ESG) practices. The fund has a long history of outperforming its benchmarks and has continued to deliver strong returns to investors in 2021.
3. Calvert Equity Fund (CSIEX)
The Calvert Equity Fund (CSIEX) is a socially responsible fund that invests in companies that have strong ESG practices. The fund screens companies based on their ethical and sustainable practices, and only invests in those that meet its criteria. In 2021, the CSIEX fund has performed well compared to its peers, making it a top choice for investors looking to invest ethically.
4. TIAA-CREF Social Choice Equity Fund (TISCX)
The TIAA-CREF Social Choice Equity Fund (TISCX) is a socially responsible fund that focuses on investing in companies that have positive social and environmental impacts. The fund screens companies based on ESG criteria and only invests in those that align with its values. In 2021, the TISCX fund has delivered strong returns to investors, making it one of the top-performing ethical funds of the year.
5. Domini Impact Equity Fund (DSEFX)
The Domini Impact Equity Fund (DSEFX) is a socially responsible fund that invests in companies that promote social and environmental change. The fund screens companies based on their commitment to sustainability and social responsibility, and only invests in those that meet its criteria. In 2021, the DSEFX fund has performed well, making it a top choice for investors looking to make a positive impact with their investment dollars.
In conclusion, ethical investing is becoming increasingly popular among investors who want to align their values with their investment choices. There are many ethical funds available on the market, but not all perform equally well. The funds mentioned above have proven track records of delivering solid returns to investors while also making a positive impact on society and the environment. Investors looking to add an ethical fund to their portfolio should consider these top performers when making their investment decisions. Investing in ethical funds not only allows investors to earn financial returns but also contributes to a more sustainable and socially responsible world.
Ultimately, choosing the best ethical funds can help investors create a positive impact on society and the environment while also achieving their financial goals. With the variety of ethical funds available, investors have the opportunity to invest in companies that align with their values and make a difference in the world. By selecting the right ethical funds, investors can build a portfolio that reflects their commitment to sustainability and social responsibility.