5 Eco
Socially responsible investing (SRI) has gained traction, reflecting an increasing emphasis on sustainability. A significant branch of SRI focuses on environmentally-conscious investing, which channels funds into companies committed to ecological responsibility. This spans areas such as clean energy, sustainable resources, waste management, and even related consulting services.
You don’t have to sacrifice your financial interests for a green agenda any longer. Now, it’s feasible to prioritize both sustainability and returns simultaneously. We’ve identified five funds that effectively combine ecological investments with strong performance metrics.
(When tracking the performance of your sustainable investments, keep in mind that various sectors often have distinct indices for performance benchmarking, which should influence your portfolio allocation decisions.)
1. Pax World Global Environmental Markets Fund [MUTF: PGRNX]
A favorite among environmentally-conscious investors, the Pax World Global Environmental Markets Fund is dedicated to fostering long-term growth through sustainable investment practices. This fund incorporates financial assessments alongside environmental, social, and governance (ESG) criteria. Its rigorous evaluation process has proven beneficial, resulting in performance that surpasses global market benchmarks with an average five-year return of 10.77 percent. Morningstar rates it three stars, and notably, it does not include fossil fuel investments.
2. Guggenheim Solar ETF [NYSEARCA: TAN]
The Guggenheim Solar ETF is the go-to exchange-traded fund for those keen on investing in solar energy. It encompasses various sectors related to the solar industry, including supply, lighting, raw materials, and installation services.
3. Pattern Energy Group Inc Class A [NASDAQ: PEGI]
Specializing in renewable energy, particularly wind and solar, Pattern Energy Group works as an independent energy producer. Their latest wind farm, spanning an impressive 150 acres, is designed to provide all the electricity needed for Amazon Web Services. Although 2014 was challenging for the independent energy sector, PEGI has shown significant improvements in its performance over the past three years, indicating promising prospects for future earnings.
4. Etho Climate Leadership U.S. ETF [NYSEARCA: ETHO]
This ETF spotlights leaders with minimal carbon emissions. ETHO is notable for being the first diversified index ETF that eschews fossil fuel companies while selecting stocks based on their carbon footprint. Managed by Etho Capital, the fund provides the Etho Climate Leadership Index [ECLI], establishing a benchmark for companies demonstrating the smallest carbon footprints in their respective industries.
5. Ameresco [NYSE: AMRC]
Ameresco specializes in sustainable assets and renewable energy, offering performance contracting and consultancy services. By assisting government agencies in lowering their energy costs, they fuel their growth trajectory. Ameresco exceeded earnings expectations in 2016 and aims to expand further in 2017. The increasing demand for their services is anticipated to support this growth.
