The numbers keep coming, in report after report, and they show that Exchange Traded Funds (ETFs) tracking socially responsible indices outperform those that track their parent indices. The latest evidence comes from UBS Global Asset Management. It finds that outperformance by socially responsible investment has been happening on a global scale over the last five years, according to the Financial Times Advisor. An ETF is a security that tracks an index or index fund; it trades like common stock, and undergoes price changes as it is bought and sold. In other words, it reflects market value (just as regular stocks are, or were, supposed to). The bottom line is becoming conventional wisdom: investing in an SRI fund doesn’t limit returns—in fact, it can increase them.
John Howell, Editorial Director
This post was originally published on Justmeans.com
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