7 of 8 Biggest US Green Funds outperforming non-responsible funds

I noticed this item in the news, and it's good to see that investing with your consicous mind can sometimes, if not always, improve your investment returns, and more specifically related to this story, your risk-adjusted return.

Equity mutual funds that incorporate environmental, social and governance (ESG) analysis are outperforming their more traditional peers, according to analysis by Trucost and RLP Capital.

Seven out of eight responsibly-managed mutual funds have “significantly higher alpha” over three years, according to the analysis, meaning risk-adjusted performance is better than the traditionally managed funds.

London-based environmental research firm Trucost and independent wealth management firm RLP compared the eight largest US traditional mutual funds, by asset size, with the eight largest US responsible funds.

“This study demonstrates that ESG analysis can provide investors with better risk-adjusted performance. The alpha performance rank data for the responsible funds in this study are hard to ignore,” said Bud Sturmack, managing director of independent wealth management firm RLP.

The report does not put a dollar value on the outperformance between the two groups, instead breaking this down by the asset class in which the funds invest.

Comparing the four traditional and four responsible funds that invest in a blend of large capitalisation companies, the responsible group were down on average 6.88% over three years, compared to a 9.66% drop in the traditional group. Over a five-year period, total returns were up 1.24%, while the traditional funds were up 0.10%.


Full online article comparing returns of green mutual funds to regular mutual funds


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SolarIntell.com Solar Energy Stocks, Green Power Investing

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Buying Opportunity emerging in Green Energy Mutual Funds

Many alternative energy and renewable power stocks have retreated with broader markets in recent weeks, despite the almost guaranteed accelerated push for clean technology and a sustainable economic base resulting from the Gulf of Mexico calamity. You can't even begin to estimate the LOSS OF HEALTH that will result from seafood disappearing from the diets of millions of Americans...

Please have a look at some of the green mutual funds and ethical ETFs profiled on this blog, and consider starting a dollar-cost-averaging program with some of them. It's a slow and steady way to build wealth, and you can rest assured that you are indeed putting your money where your mouth and mind are!

Peace 2 All,

Joe