Many investors are interested in Socially Responsible Investment (SRI) policies. An SRI precludes investment in companies that produce harmful products such as tobacco or arms or in companies with harmful practices such as child labor infractions. As recently as a few years ago, such policies were expensive and limited investment opportunities. Today there are a number of funds and ETF families that apply SRI policies for a small additional cost. While the funds may not satisfy every desire for an individual investor, they do avoid the common objections. Costs for managing these portfolios is dropping as computer managed customized screening is becoming more available.
- 1Many investors can realize highly effective, economical and efficient globally diversified portfolios that are consistent with their values
- 2It’s getting easier and cheaper to implement computer managed customized screening for funds and ETFs
- 3Growing demand will lead to more socially responsible investment options
Looking forward things are only going to get better for socially responsible investors. It’s getting easier and cheaper to implement computer managed customized screening for funds and ETFs.