Taking Socially Responsible Investing To The Next Level

Socially responsible investing has come a long way over the past decade. It used to be viewed as a way for relatively small numbers of investors to divest themselves of stocks in industries whose practices they opposed. Tobacco, alcohol, and gambling companies were common targets. Now, this approach has broadened its appeal, often with a focus on environmental, social, and governance (ESG) policies of companies. And these days, screening tools for socially responsible funds tend to be as much about finding companies with positive records as about excluding those with objectionable qualities.

As interest has grown, there has been an enormous expansion in the number and variety of mutual funds and exchange traded funds (ETFs) across the spectrum of what is now often called impact investing.

And whereas old-style socially responsible investing often meant sacrificing returns, these days many such funds perform as well or better than the overall market, helped by the same kinds of analysis that applies to other kinds of investments.

That’s not to say ESG investments have some magical formula. Investors run the same risks as they do with other equities and there are no guarantees against losses, especially in a declining market. Consider all aspects to find the investment mix suitable for your situation. Contact our advisors to learn how you can invest responsibility in a way that helps everyone.

Please note that various factors such as changes in tax laws, inflation, and the uncertainty of social security can have a significant impact on the results of the study discussed in this section. This presentation was designed for educational purposes only and is not intended for specific legal, accounting, investment, income tax or other professional advice. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Withum Wealth Management, [“WWM”]), or any non-investment related content, made reference to directly or indirectly in the presented material(s) will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from WWM. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. WWM is neither a law firm nor a certified public accounting firm and no portion of the presented material(s) should be construed as legal, accounting or consulting advice. A copy of the WWM’s current written disclosure statement discussing our advisory services and fees is available for review upon request. To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this communication (including attachments) is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code. ©2012 Advisor Products Inc. All Rights Reserved.

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