Socially Responsible Investing Part Two

When I first wrote about socially responsible investing in 2015, it was an idea that was just beginning to take hold. Now referred to as Sustainable or ESG (Environmental, Social and Corporate Governance) investing, it has become a real thing. According to the Forum for Sustainable and Responsible Investment, global sustainable investment assets reached 30.7 trillion dollars by the beginning of 2018. Only this week, Blackrock CEO Larry Fink wrote a letter to fellow CEOs declaring that companies must consider sustainability alongside of seeking profits.

What gives? Today, more and more investors want to see their personal values reflected in their portfolios and are seeking ESG investment solutions. Evidence also suggests that investors don’t have to sacrifice doing well for doing good. Comparisons of social market indexes like the MSCE KLD 400 Social Market Index compare favorably with non ESG indexes like the S&P 500.

To learn more about ESG investing, LPL Research published a brochure on the topic linked here: h

If you have an interest in ESG investment solutions available at LPL, please give me a call.

The MSCI KLD 400 Social Index is a float-adjusted, market capitalization-weighted, common stock index of U.S. equities and is the first benchmark index constructed using environmental, social and governance (ESG) factors. It is a widely recognized benchmark for measuring the impact of social and environmental screening on investment portfolios and is calculated by the MSCI Group.

The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. Past performance is no guarantee of future results.