Socially responsible investing

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michaeljmroger
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Socially responsible investing

Post by michaeljmroger » Thu Mar 14, 2019 1:04 am

For personal reasons, I want to invest some money in a fund focusing primarily on environment and sustainability. I’ve identified VFTAX, ESGV and VSGX so far, but I’m not entirely sure how to make a choice as I’m new to ESG investing, and I couldn’t find much information about these three funds.

I want to take a decision based on tax-efficiency (it’s for a taxable account and I’m in a high tax-bracket) and on the fund’s focus on environnement. I’d prefer to stick with Vanguard funds (especially a mutual fund), but I’m open to other suggestions if there are better alternatives that match my criteria.

I’d greatly appreciate your guidance!

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michaeljmroger
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Re: Socially responsible investing

Post by michaeljmroger » Thu Mar 14, 2019 2:37 am

I read a little bit more about the topic and it seems like the funds I listed above are only following some ESG “best practices”, but they aren’t investing in companies actually focusing on environmental causes.

It seems like iShares’ SDG and ICLN are much closer to what I’m looking for, although I’m a bit annoyed with the high ER and poor diversification. Any opinion on these funds and their tax-efficiency?

Daryl
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Re: Socially responsible investing

Post by Daryl » Thu Mar 14, 2019 5:41 am

Without commenting specifically on "Socially Responsible Investing", I did look at SDG and ICLN and they both have fairly significant variances compared to their stated benchmark. I can't tell what is driving that, but I would avoid an ETF that is unable to deliver what it promised.

Also, ICLN seems very concentrated in a handful of companies. The Top 10 companies represent over 51% of the holdings (weighted)

anil686
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Re: Socially responsible investing

Post by anil686 » Thu Mar 14, 2019 8:40 am

I think this is what makes socially responsible investing difficult per se. If you look for index-like funds that follow a rules based formula - you will not have the granularity that may be sought - like explained by the OP. That would leave you with numerous actively managed funds to choose from who make their portfolio more congruent with the OP’s wishes - but that comes at a much higher cost and tax inefficiency. JMO though...

There was also a great point brought up in a recent masters in business podcast that consumers have much greater influence on their beliefs not with investments but rather with consumer behavior. Selecting green energy options, avoiding straws, contributing to charitable causes that support their beliefs. Again, JMO though...


https://www.bloomberg.com/news/audio/20 ... nt-podcast

harmony
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Re: Socially responsible investing

Post by harmony » Thu Mar 14, 2019 3:58 pm

I owned iShares MSCI Global Impact ETF | SDG all of last year. I bought it to balance some sectors which, according to my own spreadsheet, were low. Last year SDG threw off more than double the dividends of any ESG/SRI mutual funds or ETFs that I own.

In the Ishares SDG fund literature you will read that the fund only invests in equities which are representative of the index. It does not invest in the entire index. The annual report is due out soon and I will be interested in how management explains last year.

Have you looked on Morningstar under the “Tax” tab? This allows you to compare taxes of several funds and ETFs. Way down at the bottom, it shows potential capital gains exposure for each fund.

A great tool for comparing the ESG and SRI parameters of ETFs is the Head-to-Head comparison tool at ETFdb.com. Click on the ESG button and it will compare two ETFs showing six ESG and SRI characteristics. There is also more granular data behind a pay wall.

not4me
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Re: Socially responsible investing

Post by not4me » Fri Mar 15, 2019 6:32 am

michaeljmroger wrote:
Thu Mar 14, 2019 2:37 am
I read a little bit more about the topic and it seems like the funds I listed above are only following some ESG “best practices”, but they aren’t investing in companies actually focusing on environmental causes.

It seems like iShares’ SDG and ICLN are much closer to what I’m looking for, although I’m a bit annoyed with the high ER and poor diversification. Any opinion on these funds and their tax-efficiency?
What different people mean when they say "socially responsible" is different & I think same can be said of "tax efficiency". Especially the latter is a relative term. So, won't really comment on them, but you asked for comments on the etf & I think there are concerns there aside. I looked at SDG mainly & noted it is quite small & thinly traded. The nature of a niche such as 'social investing' (not unique to that by any means) is that it will be concentrated & more costly. Its size & liquidity may not matter as much to you if you plan to buy once & hold very long term. However, it may also be liquidated in a few years if it doesn't grow.

I'd also caution against letting the "tax tail wag the dog". For all the reasons to buy or avoid these funds, I'd put taxes low on the list. But we all have different situations

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Re: Socially responsible investing

Post by nisiprius » Fri Mar 15, 2019 7:50 am

In the days before I understood the relationship of risk and return, I used to invest in an actively managed balanced SRI (or ESG as we would now call it) fund, Pax World Balanced Fund (PAXWX). I have no complaints about it. However, I fooled myself into thinking that the fund was actually outperforming traditional balanced funds. That is, I thought I was "doing well by doing good," that goodness at heart was translating into money in my pocket, that there was no cost or downside to being socially responsible.

In reality, what I had was a perfectly good actively managed balanced fund, with a 1% expense ratio, that was taking some extra risk in very reasonable ways: a tilt toward midcaps, a significant inclusion of international stocks, and a tech tilt as a side effect of screening out polluters. All of these things happened to be doing well, and all of them represented extra risk, a small amount of sensible extra risk.

Source

The extra risk meant that the superior performance was just a slight magnification of the market during a time when it was going up:

Blue, PAXWX (socially responsible fund); Orange, VBINX (index fund)
Image

And just as it had risen a bit more than Vanguard Balanced Index, when the market fell, it fell a bit more than Vanguard Balanced Index and gave back all the outperformance it had gained:

Image

So I didn't feel bad about it, but then one day someone in this forum suggested that we calculate and add up the absolute dollar numbers of our fund expenses. PAXWX, which by then was only a token 10% of my portfolio, had almost a 1% expense ratio, while the rest of my portfolio was Vanguard index funds, and to my surprise I realized that PAXWX was costing me more than the rest of my portfolio combined.

So I gave a shrug and exchanged my PAXWX for Vanguard Balanced Index.

What's my point? Well, I'm not opposed to SRI/ESG investing. I do not believe, as some seem to, that the love of money is the root of all virtue. I do not feel an obligation to Adam Smith reach for the most dollars, no matter what. But I do think that you have to acknowledge that ESG investing is a compromise, and is inhibiting you from making the same choices you'd make without it.

Therefore, if you are going to go in for it, I would do my best to make some assessment and evaluating of what else, besides selecting stocks, the fund company and, if its an index fund, the index provider, is doing. Most of them have "corporate responsibility" efforts ongoing, in which they try to influence corporate behavior--"think of the great press release you can issue if you can just get listed in the FTSE4GOOD index, and you're so close if you just do this one thing."
Last edited by nisiprius on Fri Mar 15, 2019 7:54 am, edited 2 times in total.
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Valuethinker
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Re: Socially responsible investing

Post by Valuethinker » Fri Mar 15, 2019 7:52 am

michaeljmroger wrote:
Thu Mar 14, 2019 1:04 am
For personal reasons, I want to invest some money in a fund focusing primarily on environment and sustainability. I’ve identified VFTAX, ESGV and VSGX so far, but I’m not entirely sure how to make a choice as I’m new to ESG investing, and I couldn’t find much information about these three funds.

I want to take a decision based on tax-efficiency (it’s for a taxable account and I’m in a high tax-bracket) and on the fund’s focus on environnement. I’d prefer to stick with Vanguard funds (especially a mutual fund), but I’m open to other suggestions if there are better alternatives that match my criteria.

I’d greatly appreciate your guidance!
https://money.usnews.com/investing/slid ... ds?slide=6

https://money.usnews.com/investing/slid ... ds?slide=9

any useful ideas there?

Investing in Low Carbon technologies is tricky. In any emergent field you are going to have winners & losers - how it will play out is not at all clear.

lastoneover
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Re: Socially responsible investing

Post by lastoneover » Fri Apr 12, 2019 1:58 pm

Thanks for posting your preferences, and opening this conversation here. From what I've read on posts over the years, there are many different opinions, some that are so strong that the conversation ends up getting closed. So, thank you for stepping into this space with this topic.


I have similar goals (environment and sustainability) and I've been doing extensive research into both investing and ESG investing, specifically as it relates to the above specifics - sustainability. My goal is to be as simple as possible while balancing ESG with traditional investing (partly out of need, partly out of values, partly out of 'still learning and exploring'). I am focusing on index funds though, trying to have as few as possible, though not ready for 3 yet (mostly b/c of my ESG interest).

Here's what I've found:
DSI - KLD 400 Social Index Fund
CRBN - Ishares MSCI low carbon target index
both of the above have reasonable ER's (.20 and .25) respectively, not as good or as low as some, of course, but since I'm currently at fidelity, and considering switching to Vanguard, Ishares has been free to trade. So, I went with them.

We also have a brokerage at Schwab through our 401k, and there I had access to ESGV, as well, so I bought some there.
I also both ETHO, but far fewer shares b/c the expense ratio is higher than I'd like (.45%) but it's VERY aligned with my goals and values, so I wanted to 'splurge' and have a bit of fun with that.

I'm seeing that, if I switch to Vanguard, you're right...the ESG choices are far fewer. I've been doing research all morning, and not only do they not have a filter for ESG, but there's no easy way to find the funds without a decent amount of digging.

Here's another list I found:
https://www.schwab.com/secure/file/p-9561751
It's a Socially conscious funds list from Schwab, but it includes all fund families, as well as their expense ratios.

This list has been incredibly helpful as well: '
https://www.etf.com/channels/socially-responsible

As has this screener through Fidelity, which allows you to screen for Environmental ETFs:
https://research2.fidelity.com/pi/etf-s ... #theme/601

I have tried to be sensitive to the concept of investing in very industry specific ETFs though, as I've been cautioned against that for the high associated risks. That's why I like CRBN and DSI. I've also tried to look at the number of holdings of each of these funds, not go with any that are too small. BUT, I have been planning on balancing with some total index funds. I know there's some lacking logic to that, but I figure I'm ok with the idea of doubling up on those companies that I want to support and owning some Fossil fuel co's, as they'll be transitioning to renewables soon, esp. Shell, who just pulled out of the large fossil fuel lobby group.

Happy to continue the dialog, thanks again!
I'm no expert, really new to the investing scene, at least with the bogleheads philosophy, but with a flexible schedule, I've been able to put in many hours of research and have learned a lot.

DonIce
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Re: Socially responsible investing

Post by DonIce » Sat Apr 13, 2019 1:19 am

Assuming you aren't investing 100% of your portfolio this way but just a reasonably small subset, I would consider picking individual securities. You mentioned you want a specific focus on environment, not just generic ESG. Why not pick 10-20 companies in fields related to things like clean energy, energy savings and efficiency, zero emission transportation, recycling, low impact agriculture, and non-environmental companies that have substantially cut their own impact. Make your own little "fund". Nothing wrong with that. Keep in mind you often "help" the companies more by buying their bonds than their stock.

mega317
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Re: Socially responsible investing

Post by mega317 » Sat Apr 13, 2019 4:35 am

Honest question, how does it help the world to buy stocks of these companies? Wouldn't your money be better spent donating to the cause organizing some type of advocacy?

graviteer
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Re: Socially responsible investing

Post by graviteer » Sat Apr 13, 2019 6:51 am

mega317 wrote:
Sat Apr 13, 2019 4:35 am
Honest question, how does it help the world to buy stocks of these companies? Wouldn't your money be better spent donating to the cause organizing some type of advocacy?
This thread is about how you invest money -- not how you spend or donate it. The way investing choices affect the world is by changing economic incentives. For example, when technology stocks are popular with investors, their value starts rising, and talented people are incentivized to go to work for tech companies, or start new companies in the same sector, in order to get a share of the gains. So if you think it would help the world for that sort of thing to happen in, say, the renewable energy sector, you can choose to invest accordingly.

GrowthSeeker
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Re: Socially responsible investing

Post by GrowthSeeker » Sat Apr 13, 2019 7:32 am

My personal jaded view of social awareness and social justice is that it isn't what it seems, and resources devoted to these ideas do not accomplish what you think they are accomplishing. So that's my bias.
That said, and independent from that, I thing one's investing should be about investing.

My biased belief is that all one will accomplish by directing one's investments toward socially aware companies is that at some future point in time, one's Net Worth will be less than it would have been had one invested the way one thought would have been most beneficial financially. I see "socially aware investing" as being analogous to mental accounting except with respect to emotionally charged issues.

Now, if one is viewing socially aware investing as a factor, and one thinks this factor will outperform the market, fine, go for it.

Or if you want to donate to charity, donate to charity.
Just because you're paranoid doesn't mean they're NOT out to get you.

JoeNJ28
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Re: Socially responsible investing

Post by JoeNJ28 » Sat Apr 13, 2019 7:45 am

I’ve used SUSA by ishares it does a good job tracking its index and is pretty low cost.

Valuethinker
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Re: Socially responsible investing

Post by Valuethinker » Sat Apr 13, 2019 8:19 am

mega317 wrote:
Sat Apr 13, 2019 4:35 am
Honest question, how does it help the world to buy stocks of these companies? Wouldn't your money be better spent donating to the cause organizing some type of advocacy?
In terms of a multiplier effect for an individual investor? I would hazard a guess of more than 100 to 1 benefits. Maybe 1000 to 1

As a small investor at the margin you can change the cost of capital for coal companies or renewable energy companies by not a noticeable amount.

Money to say the Rainforest Action Network? Huge impact.

Valuethinker
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Re: Socially responsible investing

Post by Valuethinker » Sat Apr 13, 2019 8:25 am

graviteer wrote:
Sat Apr 13, 2019 6:51 am
mega317 wrote:
Sat Apr 13, 2019 4:35 am
Honest question, how does it help the world to buy stocks of these companies? Wouldn't your money be better spent donating to the cause organizing some type of advocacy?
This thread is about how you invest money -- not how you spend or donate it. The way investing choices affect the world is by changing economic incentives. For example, when technology stocks are popular with investors, their value starts rising, and talented people are incentivized to go to work for tech companies, or start new companies in the same sector, in order to get a share of the gains. So if you think it would help the world for that sort of thing to happen in, say, the renewable energy sector, you can choose to invest accordingly.
Contributions are also a form of economic incentive.

There is precious little evidence renewable energy investing per second increases the amount of renewables out there. An offshore wind farm is a several billion dollar investment. If institutional arrangements such as auctions support that then it will happen. The world is not short of capital.

An exception. Early stage R and D and new technology companies can have huge spillover benefits to the rest of the techno-economic system.

You might back the company which does the equivalent of inventing the transistor or the cell phone.

But it's like a casino. Even the professional venture capitalists struggle with getting it right.

tmcc
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Re: Socially responsible investing

Post by tmcc » Sat Apr 13, 2019 8:39 am

graviteer wrote:
Sat Apr 13, 2019 6:51 am
mega317 wrote:
Sat Apr 13, 2019 4:35 am
Honest question, how does it help the world to buy stocks of these companies? Wouldn't your money be better spent donating to the cause organizing some type of advocacy?
This thread is about how you invest money -- not how you spend or donate it.
invest, spend, donate.... synonyms.

stan1
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Re: Socially responsible investing

Post by stan1 » Sat Apr 13, 2019 9:17 am

I use a mental offset model. I invest in low cost passive total market portfolios and donate more to the causes that are important to me and am sometimes willing to purchase products that match my values even if they are somewhat more expensive. All of this I have control over.

Topic Author
michaeljmroger
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Re: Socially responsible investing

Post by michaeljmroger » Sat Apr 13, 2019 9:28 am

mega317 wrote:
Sat Apr 13, 2019 4:35 am
Wouldn't your money be better spent donating to the cause
I already donate a pretty significant amount every year.

graviteer
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Re: Socially responsible investing

Post by graviteer » Sat Apr 13, 2019 11:45 am

Valuethinker wrote:
Sat Apr 13, 2019 8:25 am
Contributions are also a form of economic incentive.

There is precious little evidence renewable energy investing per second increases the amount of renewables out there. An offshore wind farm is a several billion dollar investment. If institutional arrangements such as auctions support that then it will happen. The world is not short of capital.

An exception. Early stage R and D and new technology companies can have huge spillover benefits to the rest of the techno-economic system.

You might back the company which does the equivalent of inventing the transistor or the cell phone.

But it's like a casino. Even the professional venture capitalists struggle with getting it right.
I don't see why people want to set up charitable donations and socially responsible investing in opposition to each other. They are not incompatible. A person can choose to do both. Or do just one or the other. This thread happens to be about investing.

Of course it is true that investing in renewable energy (for example) increases the amount of renewables out there. How could it be otherwise? If a billion-dollar institution can make a project happen, so can a thousand individuals with million-dollar portfolios. You don't individually determine the outcome, but your choices are not meaningless.

But to get back to the topic of this thread, if you're struggling with choosing an ESG fund, my suggestion is this: keep it simple. Don't go down the rabbit hole of trying to develop the ideal personal stock index that perfectly aligns with your values. Instead, compare the ESG fund to its closest equivalent in your existing holdings. Does it improve the overlap between your values and your portfolio? Does it also uphold the Boglehead values: simple, low cost, well diversified? If so, go for it. Make the trade, and move on to finding other ways to do some good. We don't all have to become professional venture capitalists. Simply holding an ESG fund of whatever stripe is a great, easy way to make a difference in the world.

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Re: Socially responsible investing

Post by peagreenboat » Sat Apr 13, 2019 12:34 pm

Jane Bryant Quinn states in her book “How to Make Your Money Last” that Vanguard’s Social Index Fund “has held its own against the S&P 500 for the past 10 years.” (The book was published in 2017.) Personally I hold about half of my equity investments in VFTAX, and it has been my experience that it tracks very closely to VTSAX (total stock index) for a slightly higher expense ratio.

For fixed income, an investor interested in socially responsible investing can research impact investing, such as Enterprise Community Impact Notes (minimum investment $25K).

Brian96
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Re: Socially responsible investing

Post by Brian96 » Sun Apr 21, 2019 9:30 am

I’ve also been interested in this investing space and recently read a M* report on Sustainable investing that created:

“A Sustainable Funds Taxonomy:
The growth of the sustainable funds universe has been accompanied by the development of a range of specific approaches to sustainable investing. Each of the 351 sustainable funds in this report describes its approach to ESG or sustainable investing in its prospectus. Based on that prospectus language, I identified four broad types, that I call ESG Consideration, ESG Integration, Impact, and Sustainable Sector.”
https://www.morningstar.com/content/dam ... tent=15988

My interest led to the “Impact” category of renewable energy such as solar, wind, support industries, etc.

Of the 18 companies I found to be of interest here are a few:
Renewable Energy Group; First Solar; Enphase Energy; pattern Energy Group; TerraForm Power Inc;

Since I may be too lazy to buy each of the 18, I decided to look for an ETF that would invest in the bulk of them and found:

Invesco WilderHill Clean Energy ETF PBW
First Trust NASDAQ® Cln Edge® GrnEngyETF QCLN
Invesco Solar ETF TAN
iShares Global Clean Energy ETF ICLN
VanEck Vectors Global Alt Energy ETF GEX
GMO Climate Change III GCCHX

Each of the above etfs are candidates for me and I haven’t as of yet made a choice. Let me know what you think.
Best,
Brian

Topic Author
michaeljmroger
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Re: Socially responsible investing

Post by michaeljmroger » Sun Apr 21, 2019 10:57 am

Brian96 wrote:
Sun Apr 21, 2019 9:30 am
I’ve also been interested in this investing space and recently read a M* report on Sustainable investing that created:

“A Sustainable Funds Taxonomy:
The growth of the sustainable funds universe has been accompanied by the development of a range of specific approaches to sustainable investing. Each of the 351 sustainable funds in this report describes its approach to ESG or sustainable investing in its prospectus. Based on that prospectus language, I identified four broad types, that I call ESG Consideration, ESG Integration, Impact, and Sustainable Sector.”
https://www.morningstar.com/content/dam ... tent=15988

My interest led to the “Impact” category of renewable energy such as solar, wind, support industries, etc.

Of the 18 companies I found to be of interest here are a few:
Renewable Energy Group; First Solar; Enphase Energy; pattern Energy Group; TerraForm Power Inc;

Since I may be too lazy to buy each of the 18, I decided to look for an ETF that would invest in the bulk of them and found:

Invesco WilderHill Clean Energy ETF PBW
First Trust NASDAQ® Cln Edge® GrnEngyETF QCLN
Invesco Solar ETF TAN
iShares Global Clean Energy ETF ICLN
VanEck Vectors Global Alt Energy ETF GEX
GMO Climate Change III GCCHX

Each of the above etfs are candidates for me and I haven’t as of yet made a choice. Let me know what you think.
Best,
Brian
Thanks Brian, that’s really helpful!

Specifically, ICLN looks pretty good to me (which is why I listed it above). I wish it was cheaper (ER 0.47%) and more diversified (32 holdings) though.

Brian96
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Re: Socially responsible investing

Post by Brian96 » Sun Apr 21, 2019 11:50 am

Glad it was helpful. Let me know what you eventually invest in. I like each of them for different reasons so it’s tough to choose. I’m comparing them each to the list of funds I like. I may invest very small amounts in 2 or 3 of them. On the other hand (love that economist term), investing small amounts in all 18 funds - would give me my own fund without expense ratio (My free trades with Vanguard would cover that as well).

It’s not in compliance with my Bogleheadish portfolio, but as a M* Forum poster suggested to me, there is room in an investment portfolio for a “Mental Health” subsection. That resonated for me.

Best,
Brian

Brian96
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Re: Socially responsible investing

Post by Brian96 » Sun Apr 21, 2019 6:34 pm

So it was between ICLN and QCLN. I chose QCLN for the greater diversity of subcategories and more of the companies I had wanted to include.

chumpchange
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Re: Socially responsible investing

Post by chumpchange » Sun Jun 02, 2019 3:07 pm

graviteer wrote:
Sat Apr 13, 2019 11:45 am
But to get back to the topic of this thread, if you're struggling with choosing an ESG fund, my suggestion is this: keep it simple. Don't go down the rabbit hole of trying to develop the ideal personal stock index that perfectly aligns with your values. Instead, compare the ESG fund to its closest equivalent in your existing holdings. Does it improve the overlap between your values and your portfolio? Does it also uphold the Boglehead values: simple, low cost, well diversified? If so, go for it. Make the trade, and move on to finding other ways to do some good. We don't all have to become professional venture capitalists. Simply holding an ESG fund of whatever stripe is a great, easy way to make a difference in the world.
Well said. I'm new here, but I've been trying to adopt the Boglehead philosophy over the last couple of years. In spirit of the "Keep it simple", I'm mostly trying to stick with a three-fund portfolio, but I'd like to use my money for better, sustainable practices where possible, while avoiding complicated and high-cost funds. I already bike/bus to work, avoid plastic straws, signed up for 100% renewable energy from the power company (Surprisingly affordable), donate to charity-- I'd like to do something similar with my investments.

As explained at You can use Jack Bogle’s investing strategy and keep socially responsible focus, there are a number of new ESG funds available with low expense ratios.

For example, Fidelity's main ESG index funds have pretty low expense ratios, well below what I've seen for many sustainably-focused funds in the past. The desire for ESG funds is growing, and there are now a number of funds with low ( < 0.5%) expense ratios and the number of these funds is growing.

* Fidelity US Sustainability Index Fund (FITLX): 0.11% expense ratio
* Fidelity International Sustainability Index Fund (FNIDX): 0.2% expense ratio
* Fidelity International Sustainability Index Fund (FNDSX): 0.1% expense ratio

If I compare these against Fidelity's Zero index funds over their short lifespans, it looks like they are performing pretty similarly. To get a fair comparison for each of these funds, I zoom into the YTD view to get the same starting point.

* https://www.fidelity.com/fund-screener/ ... LX%2CFZROX
* https://www.fidelity.com/fund-screener/ ... DX%2CFZILX
* https://www.fidelity.com/fund-screener/ ... SX%2CFXNAX (FXNAX has a 0.025% expense ratio)

A downside is that these funds are pretty new, and there isn't much analysis to go by, no Morningstar ratings, etc. These are index funds that follow MSCI ESG benchmarks, and there is some information about those indexes.

From my own perspective, these ESG funds seem like good funds to use in a passive, low-cost, index-based three fund portfolio with a sustainable investment focus.
Last edited by chumpchange on Mon Jun 03, 2019 12:24 pm, edited 2 times in total.

donaldfair71
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Re: Socially responsible investing

Post by donaldfair71 » Sun Jun 02, 2019 3:38 pm

Nuveen has a line if ETFs that are ESG and have ERs between .35-.45. You can invest in about 10 different asset classes. M1 uses them for their socially-responsible preset portfolio.

aristotelian
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Re: Socially responsible investing

Post by aristotelian » Sun Jun 02, 2019 5:08 pm

peagreenboat wrote:
Sat Apr 13, 2019 12:34 pm
Jane Bryant Quinn states in her book “How to Make Your Money Last” that Vanguard’s Social Index Fund “has held its own against the S&P 500 for the past 10 years.” (The book was published in 2017.) Personally I hold about half of my equity investments in VFTAX, and it has been my experience that it tracks very closely to VTSAX (total stock index) for a slightly higher expense ratio.
I do not own it, but it has actually beaten the S&P over recent timeframes.

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