Socially Responsible [Investing]

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
columbia
Posts: 1493
Joined: Tue Aug 27, 2013 5:30 am

Re: Socially Responsible [Investing]

Post by columbia » Sat Apr 13, 2019 10:37 am

I pulled the lever on the VFTAX (Vanguard Social Index) fund.

It avoids 3 particular things of extreme non-interest to me (to put it politely). I’m ok if it underperforms the market, although it has bested it for the last 10 years; perhaps because of an overweight on tech?

Valuethinker
Posts: 37868
Joined: Fri May 11, 2007 11:07 am

Re: Socially Responsible

Post by Valuethinker » Sat Apr 13, 2019 12:52 pm

alex_686 wrote:
Thu Apr 11, 2019 9:07 am
MindBogler wrote:
Thu Apr 11, 2019 8:53 am
alex_686 wrote:
Tue Apr 09, 2019 9:36 am
If you believe in guns and tobacco, odds are you are not in favor of the Wall Street crowd.
This must be a broad generalization. Do you have any data to support this assertion? Are guns or tobacco, as you say, a belief system? Help us all up on to your train of thought here.
This is a personal antidotal observation.

The people I have run across who advocate for things like this tend to risk seeking, individualist who are nonconformist, and distrustful of institutions.

They are also overconfident, and if they can come up with a better strategy then they feel that they can probably execute it better as well.

I find they have the same attitudes as gold bugs, and their preference to hold physical gold over gold funds.
The delusion here, and it's very common, is that one can "beat the system".

That somehow one has seen some pattern that the market as a whole has not cottoned on to, and thus there are excess profits - $20 bills lying in the streets.

We reject that as a general notion here, that you can beat market efficiency.

(Off topic comments removed by Moderator Jbranx)

Whakamole
Posts: 911
Joined: Wed Jan 13, 2016 9:59 pm

Re: Socially Responsible [Investing]

Post by Whakamole » Sat Apr 13, 2019 12:56 pm

columbia wrote:
Sat Apr 13, 2019 10:37 am
I pulled the lever on the VFTAX (Vanguard Social Index) fund.

It avoids 3 particular things of extreme non-interest to me (to put it politely). I’m ok if it underperforms the market, although it has bested it for the last 10 years; perhaps because of an overweight on tech?
Overweight on tech, financials (a very nice recovery in the past 10 years - 2009 was the bottom of the bank crisis), and health care, and underweight on energy and utilities.

jbranx
Moderator
Posts: 843
Joined: Thu Feb 09, 2017 6:57 pm

Re: Socially Responsible [Investing]

Post by jbranx » Sat Apr 13, 2019 1:14 pm

I removed some off topic comments in this thread. The topic is SRI, socially responsible investing. Comments about the shortcomings of people interested in SRI are unacceptable. See Forum Rules 4(b) on discussions of the crimes, shortcomings or stupidity of other people. Moderator Jbranx.

SGM
Posts: 2930
Joined: Wed Mar 23, 2011 4:46 am

Re: Socially Responsible [Investing]

Post by SGM » Sat Apr 13, 2019 3:54 pm

I own the whole market. I have my own ideas about what is socially responsible and would not depend on others to make this judgement.

columbia
Posts: 1493
Joined: Tue Aug 27, 2013 5:30 am

Re: Socially Responsible [Investing]

Post by columbia » Wed May 15, 2019 7:29 pm

I certainly missed this in March:


Vanguard to expand ESG offer with active global equity fund
https://institutional.vanguard.com/VGAp ... Info030719

Wellington Management will handle it.

BSBHead
Posts: 22
Joined: Sun Nov 11, 2018 12:45 pm

Re: Socially Responsible [Investing]

Post by BSBHead » Wed May 15, 2019 8:55 pm

Having seen this play out in the institutional space, I think the hardest thing to figure out is what is socially responsible? I get big tobacco, guns, and oil & gas, but what about companies that pay their employees significantly lower than average or have a big carbon footprint (e.g. airlines)? What about companies with potential privacy related issues (e.g. social media)? Basically, this is an impossible equation in my view given every person in the world has a different view of what is socially responsible.

pdavi21
Posts: 1025
Joined: Sat Jan 30, 2016 4:04 pm

Re: Socially Responsible [Investing]

Post by pdavi21 » Wed May 15, 2019 10:24 pm

Because the opposite of active management is also active management.

Really, the socially responsible list looks like a joke to me, but I am not on the ethics committee.
"We spend a great deal of time studying history, which, let's face it, is mostly the history of stupidity." -Stephen Hawking

columbia
Posts: 1493
Joined: Tue Aug 27, 2013 5:30 am

Re: Socially Responsible [Investing]

Post by columbia » Fri May 17, 2019 1:25 pm

That VG fund will hold only 40 companies (to start). I don’t even know how to parse that approach.

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