SUSTAINABLE INVESTING 101

 

If you are concerned with the Climate Crisis and want to lower your carbon footprint, we have good news for you. You can do so as an investor! Not just any kind of investor but one who focuses your investments on sustainability. Today there are over three hundred Sustainable Mutual and Exchange traded funds that offer this type of investing.  And they are attracting more money then ever! 

GREENHOUSE GASES ARE THE ENEMY, NOT PROFITS
We can invest in clean companies!  Sustainable investing tends to identify companies which are committed to a greener future and are environmental leaders in their industries. These funds have little or no exposure to fossil fuel-based energy stocks, factory farming or companies with a history of toxic spills.  Sustainable investing often takes a moral position by not investing in tobacco or companies which engage in child labor.  
 
BE PART OF A GLOBAL MOVEMENT
It is time to feel good about where your money goes. Many of the world's largest institutional investors have realized the importance of directing their investments to companies which are greener. Individual investors now have the same opportunity to invest in an eco-friendlier future.

WHY TRADE PERFORMANCE FOR ETHICS?
There has been no trade off! Sustainable investments with its focus on large well-known companies (Apple, Tesla, Visa etc.) as well as up and coming innovators and have had market like returns. (https://www.ussif.org/performance)    

DO WELL DO GOOD! 
Your sustainable investments can help you achieve your financial goals while also helping to mitigate the Climate Crises. Many of the companies in the portfolio treat their workers, customers, and communities as well as they do their shareholders. In a post COVID world, those are the types of companies that are likely to thrive. 

INVEST WITH LESS RISK AS YOU AGE
If you want less investment risk and volatility as you grow older, we can do so using a target date fund concept. Every year we would allocate more of your funds toward bonds using less stocks. The goal is to provide income with less volatility. This solution is often best enacted five years from your expected retirement date. 

The sustainable funds* we use at Sila Wealth Advisory are low fee disciplined broad based investments based on rigorous academic research. Often referred to as Evidence Based Investing. If you would like to more about sustainable investing, our services or would like to subscribe to our blog, call us at (216) 292-8700 or email us.  


Disclosure: Investing in stocks, bonds, mutual funds etc. involves certain risks. Such as loss of principle and no guarantee of returns. They are not FDIC insured nor are they bank deposits. Stocks tend to be riskier than bonds, but the latter also does have unique risks which may be interest rate, inflation and loss of principle risks.