International SRI Returns comparable with Traditional Investments

Due to the rise in Commodity prices and sectors such as solar energy in recent years, Socially Responsible Investing (SRI) Exchange Traded funds (ETF) have outperformed abroad. Internationally SRI strategies have performed much better.

Socially responsible ETFs that invest in stocks averaged a 15.5% gain for the year ended March 29, compared with a 13.8% gain for the non-SRI variety. They also outperformed on a three- and five-year basis. International-stock ETFs that practice SRI also topped active managers, over one, three and five years. Whether a socially responsible ETF’s returns are comparable with those of funds that don’t follow SRI principles, evidence shows is possible.

SRI funds are part of another trend known as sustainable investing, which invests not just in companies with a morally acceptable business, but in companies that are responsive to their employees, customers and communities. Traditional screens still apply to SRI companies, for example, businesses involved with alcohol, tobacco, gambling and firearms are typically excluded. David Schoenwald, who co-founded the New Alternatives Fund Inc says, he avoids companies with poor labour practices, companies that produce nuclear energy, coal and weapons, and those that test on animals or have pollution issues, narrowing down the list considerably. Many socially responsible ETFs include names such as “IShares MSCI KLD 400 Social Index”, which follows the broad, socially responsible U.S. benchmark of the same name. Many staples of the “Standard & Poor’s 500-stock index” are included, its top five positions recently belong to: “Microsoft Corp.”, “International Business Machines Corp.”, “Procter & Gamble Co.”, “Johnson & Johnson” and “Wells Fargo & Co.”

There are common misconceptions of SRI. Socially responsible funds still suffer from a perception among investors that they are too restrictive about the types of companies they invest in. With roughly $100 billion invested in socially responsible investing, or SRI, these funds are still a small portion compared with the $7 trillion invested in all stock mutual funds and ETFs. One reason for the ETFs’ outperformance abroad is the rise of commodity prices and alternative energy, such as solar, in recent years. George Gay, chief executive of First Affirmative Financial Network says: “International markets, especially emerging markets, have a much higher exposure to commodities and energy”.

“There’s an argument to be made that these companies will do quite well over the long term,” says Michael Johnston, senior analyst at ETF Database. “They’re likely to avoid litigation, environmental disasters, bad PR. “Even though returns for socially responsible ETF’s that invest in the U.S. have not performed as well, rising 14.2 % on average, the international SRI ETF strategies have performed well.


About Insight group PLC

About Us Insight Group PLC is a leading private investment company based in the thriving city of Cape Town, South Africa. With offices also located in Mozambique, Gambia and the financial hub of Hong Kong; Insight Group PLC is perfectly positioned to provide clients with investment opportunities and expertise unsurpassed in today's marketplace. We take great pride in our ability to provide our clients with quantifiable confidence in everything we do. Our ability to achieve this and meet the varying needs of all of our clients stems from the fifty years of experience in the financial, media, commodities and property sectors of those leading the organisation's success. Chairman of Insight Group PLC, Alfonso Rivera Revilla, is a respected Accountant and Lawyer in Europe with over 25 years of experience in working with high-end investors who want to get the most out of their personal finances and their businesses: "In these difficult economic times, it is critical to protect your wealth. Traditional strategies, such as high interest rate accounts, no longer give people a worthwhile return. At Insight Group PLC, we're excited about the fact we offer investment opportunities that other's can't - including the big banks and funds. We personally seek the most competitive investment options for our clients and put them in touch with our industry experienced and respected Wealth Management Specialists (click here if you'd like to work for us). "We are confident in everything we do, contact us to share in that confidence and to reap the rewards." View all posts by Insight group PLC

23 responses to “International SRI Returns comparable with Traditional Investments

  • contactos con mujeres

    I have bookmarked you contactos con mujeres , this is excelent information my friends, nicely done contactos con mujeres

  • Pozycjonowanie

    I simply wished to thank you very much once again. I’m not certain what I could possibly have taken care of without those opinions shown by you relating to such a situation. It has been a very scary dilemma for me personally, however , observing the specialized mode you resolved that made me to cry for gladness. Now i am thankful for your information and as well , sincerely hope you realize what an amazing job you happen to be providing instructing others with the aid of a web site. I know that you have never met any of us.

  • Sang

    Hey very nice web site!! Man .. Excellent .. Amazing .. I will bookmark your blog and take the feeds also…I’m happy to find a lot of useful information here in the post, we need work out more strategies in this regard, thanks for sharing. . . . . .

  • Aleen

    Thanks for your own hard work on this web site. Betty really likes getting into research and it’s really simple to grasp why. We hear all concerning the dynamic tactic you provide very useful steps by means of the website and as well improve response from the others on that subject so our own child is undoubtedly studying so much. Take pleasure in the remaining portion of the year. You are always carrying out a superb job.

  • pozycjonowanie stron www

    I have read a few of the articles on your website now, and I really like your style of blogging. I added it to my favorites blog site list and will be checking back soon. Please check out my site as well and let me know what you think.

  • Visit my website

    Wonderful beat ! I wish to apprentice while you amend your website, how could i subscribe for a blog site? The account helped me a acceptable deal. I had been a little bit acquainted of this your broadcast offered bright clear concept

  • katalog seo

    Great blog here! Also your site loads up fast! What web host are you using? Can I get your affiliate link to your host? I wish my site loaded up as quickly as yours lol

  • Marti Erpenbach

    Hi, Neat post. There’s a problem with your web site in internet explorer, would test this… IE still is the market leader and a big portion of people will miss your great writing due to this problem.

  • skórzane

    Valuable info. Lucky me I found your site by accident, and I am shocked why this accident did not happened earlier! I bookmarked it.

  • Ashlie Engram

    Thanks for another informative web site. Where else could I get that kind of info written in such an ideal way? I’ve a project that I’m just now working on, and I have been on the look out for such information.

  • Darmowe konto w banku dla dzieci

    Hong Kong right now remains one of the best offshore banking jurisdictions. It gives a fantastic combination of bank secrecy, corporate secrecy, a fiscally and politically stable environment, and sturdy banks. But probably most importantly, it is a protected offshore expense haven for those who want to diversify out of sinking western currencies into booming Asian markets, and China in particular.

  • walizka

    This is very interesting, You’re a very skilled blogger. I’ve joined your feed and look forward to seeking more of your excellent post. Also, I’ve shared your website in my social networks!

  • zobacz

    You could definitely see your enthusiasm in the work you write. The world hopes for more passionate writers like you who are not afraid to say how they believe. Always follow your heart.

  • Denver Yurchak

    Hey. Cool article. There’s a problem with your site in chrome, and you may want to check this… The browser is the market leader and a huge component of other people will omit your wonderful writing because of this problem.

  • Dating UK

    Get the facts…

    […]Good day! I just would like to give you a big thumbs up for your excellent info you have got right here on this post. I’ll be coming back to your site for more soon.[…]…

  • Reta Toscano

    Valuable information. Lucky me I found your web site by accident, and I’m shocked why this accident did not happened earlier! I bookmarked it.

  • Darryl Georgalas

    Hello there, You have done a fantastic job. I’ll certainly digg it and personally recommend to my friends. I am sure they’ll be benefited from this site.

  • long feather earrings pretty little liars

    Thank you an unbelievable put up, may read your particular others topics. thanks for your thinking for this, I experienced a trifle strike by this short article. Many thanks again! You wanna make an excellent moment. Displays the beauty through excellent info here. I feel that in case more people considered it like that, they’d have got a better moment in time receive the grasp ofing the difficulty.

  • Polska Lewica

    Hi, Neat post. There is a problem with your site in internet explorer, would check this… IE still is the market leader and a large portion of people will miss your magnificent writing because of this problem.

  • Wiki

    you got a very wonderful website, Gladiolus I discovered it through yahoo.

  • peacock feather earrings

    Many thanks for an unbelievable submit, would study your personal others topics. thank you your thinking within this, I soon became a bit strike by this post. Thanks again! You wanna make a good point. Portrays natures best by the wonderful facts here. I do think that in case more individuals consideration for it like this, they’d have a better moment in time obtain the hold ofing the issue.

  • Proothisi Istoselidon

    Greetings! Very helpful advice within this article! It’s the little changes which will make the most significant changes. Thanks for sharing!

  • Dominga Wigham

    You can definitely see your enthusiasm in the work you write. The world hopes for even more passionate writers like you who are not afraid to say how they believe. Always follow your heart.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: