Five Low Cost SRI Funds

The growth of Socially Responsible Investing (SRI) has been phenomenal — socially screened portfolios have grown from $165 Billion in 1995 to well over $3 Trillion in 2012. Most studies suggest that SRI-screened portfolios have about the same risk-adjusted returns as their unscreened counterparts. Socially Responsible Investing not only earns competitive returns, but also helps to build a sustainable future and enhance our quality of life through shareholder activism.

The universe of socially responsible investments is extremely small compared to the universe of mutual funds and exchange traded funds available. As a result of the smaller number of choices, I am often appalled at some of the internal costs association with SRI-screened funds. If there is a cost for sustainable investors, it is the expense ratio associated with many SRI-screened funds. It is more challenging for a SRI investor to find a good low cost option. However, they are available. I have provided a list of five low cost, no-load SRI options below.
TIAA-CREF Social Choice Equity Fund (TICRX) – .44% Expense Ratio
Vanguard FTSE Social Index Fund (VFTSX) – .29% Expense Ratio
TIAA-CREF Social Choice Bond Fund (TSBBX) – .65% Expense Ratio
Parnassus Fixed-Income Fund (PRFIX) – .75% Expense Ratio
iShares FTSE KLD Social Index Fund (KLD) – .50% Expense Ratio

The information provided in the chart above was gathered through each company’s website and MorningStar, Inc. as of the date of this article.

Kevin McNab

This article is written by Kevin J. McNab. Kevin is President of ACE Wealth Partners, LLC and is a CFP®, ChFC®, and CRPC®. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views expressed in this blog post are as of the date of the posting, and are subject to change based on market and other conditions. This blog contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this blog post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by ACE Wealth Partners, LLC unless a client service agreement is in place. If you have any questions regarding this Blog Post, please Contact Us. Please read our website DISCLOSURE carefully for additional information.