Make Your Dollars Count with Impact Investing

Impact investing is an investment strategy that generates financial gains alongside positive social and/or environmental effects.

Rather than just making money for the sake of it, the aim is to use that capital for good. Done right, both the investor and the world end up better off.

Retail investors may not have sufficient capital to invest in a dedicated find or with a private equity firm. However, they can choose from several impact investing, ESG mutual funds, or exchange-traded funds (ETFs).

Parnassus Core Equity (PRBLX)

This actively managed mutual fund invests in US large-cap companies with “positive performance on ESG criteria” and other factors. PRBLX excludes companies whose primary business is alcohol, tobacco, weapons, fossil fuels, nuclear power, or gambling and then filters by ESG criteria.

The ETF excludes certain companies in the adult entertainment, alcohol, tobacco, weapons, fossil fuels, gambling, and nuclear power industries.

Vanguard ESG US Stock ETF (ESGV)

iShares ESG Aware MSCI USA ETF (ESGU)

The index applies screens excluding firearms, weapons, tobacco, and certain coal and oil sands stocks. The process gives the ETF an orientation toward companies with positive ESG characteristics.

Impact investing is the perfect solution for savvy investors who want to generate both wealth and benefits for society.

Time to Become an Impact Investor?

As we’ve seen, individuals and organizations around the globe are already using it to good effect – challenging the traditional idea that investing and philanthropy are opposing practices in the process.

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