Find Funds That Build Wealth & Support Your Values, Too (video)

December 13, 2016

Here’s a simple thing you can do to support the issues that matter to you: Invest in a way that has a positive impact.

There are funds that can help you build wealth and support your values, too. They’re called sustainable responsible impact (SRI) funds, and they’re one of the fastest growing areas of the mutual fund industry.

More and more investors are looking for funds that are doing well and doing good in the world, and SRI funds have a long history of doing just that.

FundX President Janet Brown has been investing in these funds for decades and she’s seen firsthand how they can help you make a difference.

Click below to learn more.



How you invest your money can be a vote for the values you want to support.

But it’s hard to know if a company is really doing the right thing. How can you know if it’s treating its workers fairly or using resources wisely? How can you tell if it’s operating in an ethical way?

Most of us don’t have the time or the expertise to do this important work, but there are many mutual funds that do it for us. Sustainable responsible impact (SRI) funds have a long history of helping investors align their wealth and their values.

Full Transcript

Identifying and living our values is now more important than ever. I think most of us can agree we want a safe, healthy and prosperous world where people are treated fairly.  

I’ve recently talked to friends and colleagues who are wondering what they can do toward that end. Many of my contemporaries want to redouble their efforts to contribute to positive change in our world.  

One simple contribution we can all make is to realize that our purchases have power. Where we spend and invest our money can be a vote for the values we want to support.  

For instance, if two companies—or two funds—are both doing well, most of us would rather invest in the one that’s producing products we like or that’s treating its employees fairly, or perhaps contributing to a cleaner environment.

I believe these companies will likely be more successful over time. Here’s why: happy workers are more productive. The company that exploits—either resources or people—may face fines or lawsuits that could really hurt its bottom line.

More and more investors are becoming aware that what’s good for society is also good for business. You can grow your portfolio for a secure and comfortable retirement, while also making positive impact.

How can you evaluate a company’s record, though? How do you know if a company is treating its workers fairly or using resources wisely. Most of us don’t have the time to do this important work.  But that’s exactly what SRI funds -sustainable responsible impact funds- do.

SRI funds have a long history of helping investors generate positive returns and make a positive impact.  They’re one of the fastest growing areas of the mutual fund industry today. Assets have increased from $640 billion to nearly $2 trillion in just the last few years.

We’ve covered SRI funds in our NoLoad FundX newsletter since they started. For the last 20 years we’ve also managed sustainable portfolios for clients, so we’ve seen firsthand how these funds have evolved.

When we first started using them, most SRI funds used exclusionary screens: they avoided certain industries, like tobacco, weapons or fossil fuels, for example. This approach was limited. It didn’t help you support the companies that were trying to do the right thing.

Today there’s a more comprehensive approach to actively encourage good corporate behavior.  Many funds use positive screens. They invest in companies with good environmental, social or governance practices. And funds don’t always divest from companies that they think could do better. Instead, they may invest in a company in an effort to improve. Funds use their power as shareholders to actively engage with the company to help it move forward.

For instance, instead of excluding all fossil fuel companies, an SRI fund may invest in an oil company that’s working toward clean energy. Shareholders can work to help the company increase its investment in renewable energy.

I’m investing more of my portfolios in sustainable funds, and I hope you will, too.

Thanks for watching.


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