Responsible Investment Indices Outperform, Again

The numbers keep coming, in report after report, adding up to show that Exchange Traded Funds (ETFs) tracking socially responsible indices have outperformed those that track the parent indices. The latest evidence comes via UBS Global Asset Management. It finds that outperformance by socially responsible investment has been a fact on a global scale over the last five years, according to 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 enhance them.

John Howell, Editorial Director