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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Fantasticmrfox on May 25, 2018, 01:23:53 AM

Title: Socially responsible investing
Post by: Fantasticmrfox on May 25, 2018, 01:23:53 AM

Greetings fellow Mustachians!

What are your thoughts on, and are there any Socially Responsible Index Funds that you would recommend?

Several years ago I refused to consider investing unless I was able to invest in a socially responsible index, I was told that no such thing currently existed and as time wore on I eventually succumbed to the prevailing wisdom and invested in a VT index fund.

Having revisited the topic recently I have found that decent SRIs do exist, or have existed for some time without my knowledge. I value and trust the advice I receive here. I'd like to know whether you think investing in an SRI is a good choice.

SRIs currently cost about 0.25 compared to 0.1 on my VT. A cost I'm relatively happy to incur given the relative ethical benefits. I'm also not sure whether my Brokerage (Interactive Brokers) gives me access to Vanguard's SRI Global Stock Fund GBP. So, might have to look into another.

Thank you in advance.

Title: Re: Socially responsible investing
Post by: MDM on May 25, 2018, 01:31:46 AM

See the following for some previous discussion.  In short, do what makes you happy but expect an SRI fund to underperform broader market index funds.

Socially responsible investing. What do you recommend? (https://forum.mrmoneymustache.com/investor-alley/socially-responsible-investing-what-do-you-recommend/msg1193099/#msg1193099)
Non-profit and socially responsible investing! I need some serious help here! (https://forum.mrmoneymustache.com/investor-alley/non-profit-and-socially-responsible-investing!-i-need-some-serious-help-here!/msg613532/#msg613532)
Overly socially responsible investing? (https://forum.mrmoneymustache.com/welcome-to-the-forum/overly-socially-responsible-investing/msg732776/#msg732776)
Amazing resource for socially responsible mutual funds! (https://forum.mrmoneymustache.com/investor-alley/amazing-resource-for-socially-responsible-mutual-funds!/msg292650/#msg292650)
My local government wants to get into Socially Responsible Investing (https://forum.mrmoneymustache.com/investor-alley/my-local-government-wants-to-get-into-socially-responsible-investing/msg1262721/#msg1262721)

Title: Re: Socially responsible investing
Post by: Fantasticmrfox on May 25, 2018, 01:37:22 AM

Thanks, MDM. I read that they sometimes underperform and sometimes beat the benchmark, so essentially end up pretty similar over time.

I will check the discussion links you sent for greater detail.

Title: Re: Socially responsible investing
Post by: expatartist on May 25, 2018, 02:54:55 AM

Good summary of these threads! I've struggled with this too. Also, some socially responsible index funds have been known to include gun manufacturers or food companies with dodgy practices. Seems more like 'choose your poison'