The idea of having investments be influenced by one’s values and a desire to advance the social good (in addition to personal profits) is not new, but in recent decades there has been substantial growth in various forms of socially responsible investing (SRI) strategies. However, given the relatively limited number of SRI funds in the marketplace, investors haven’t had a lot to choose from, and the nature of buying an SRI fund or not means the investor is either all-in or all-out for the strategy (at least with that particular portion of the allocation). Yet with the recent launch of Morningstar Sustainability Ratings, in partnership with Sustainalytics, it now becomes feasible to not just “buy an SRI fund” (or not), but to tiltany portfolio towards sustainable investing, simply by choosing the most sustainable of the available choices in any investment category.
Read the full article by Michael Kitces
