Investing to bring about positive change on issues like climate change, gun control and gender diversity at work is moving into the mainstream in the mutual fund and ETF world. Today there are many ESG funds that let investors reach for profits without sacrificing their values.
The growing trend of investors channeling their investment dollars to companies that score high on ESG measures, like environmental friendliness, social equality and good corporate governance, is fueling an explosion of new funds that package ESG-friendly stocks in one basket. ESG stands for environmental, social and governance. There are now 288 ESG-focused mutual funds and ETFs, according to Morningstar. More than half of them have been launched since 2015, including 17 this year.