More Aggressive Choices
For investors who aren't concerned with keeping their exposure close to the broader market, a number of more aggressive ETFs exist. The iShares MSCI Global Impact ETF (MPCT), up 18.3% year-to-date, tracks an index of companies that "derive a majority of their revenue from products and services that address at least one of the world's major social and environmental challenges as identified by the United Nations Sustainable Development Goals."
Then there's the Columbia Sustainable International Equity Income ETF (ESGN), which may appeal to income investors. It holds companies that have a minimum dividend yield of 1%, while excluding those that have unfavorable corporate ESG practices.
Clearly, ESG ETFs come in many forms. Some don't stray far from the market, while others do. Some target a specific cause, while others focus on many. It's up to each investor to look under the hood to see what principles and selection criteria these ETFs are adhering to before buying.
A full list of these funds can be found on the ETF.com screener and database by choosing "Principles-based" under the "Selection" tab after clicking "More Filters."
To see this year's 10 top-performing socially responsible ETFs, see the table below:
Data as of July 20, 2017
Contact Sumit Roy at [email protected]