Environmental, social, and governance (ESG) investing has gained popularity in recent years as clients seek to align their investments with their values and promote positive change in the world.
But more recently, ESG investing hit a serious roadblock, facing political backlash and even laws banning state officials from investing public funds based on the criteria.
Still, many ESG investments have remained highly profitable.
Over the past decade, the top 20 sustainable funds have garnered an average yearly return of 13.57%, according to Morningstar Direct.
In the past 12 months, their average gain was 18.29%.
"The reality is that any quality sustainable fund is going to be competitive with any traditional benchmark," Peter Krull, director of sustainable investments at Earth Equity Advisors, recently told Financial Planning.
For financial advisors, one way to shore up authority when advising clients on socially responsible investing is to become a chartered SRI counselor (CSRIC).
This designation is overseen by the College for Financial Planning (a Kaplan company), and developed in partnership with US SIF, the Forum for Sustainable and Responsible Investment.
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