4 Things that Sustainable Investing Could Be
One of the trickier aspects of sustainable investing is that there are many different approaches and strategies that fall under the sustainable umbrella. It would be easier if sustainable investing meant the same thing to everyone – but would it actually be better?
This month’s newsletter provides a more complete picture of sustainable investing by exploring the different types of opportunities that exist. We also look into the role that sustainability plays in meeting financial goals, protecting investors from fraud, and having a positive impact on the world around us.
This month’s blog: Sustainable Investing Could Be A Way to Protect Your Money
A recent Supreme Court ruling is expected to curtail the powers of the Securities and Exchange Commission (SEC) as a financial industry regulator. Can investors trust the companies they choose to invest in without having a powerful watchdog
in place? The answer could be yes – if they are utilizing sustainable investing strategies.
This month’s blog discusses the Supreme Court’s decision and why it could present a serious risk for traditional investors. It also lays out how sustainable investing could be the key to better risk management, particularly in a world with less stringent regulation.
Sustainable Investing Could Be the Key to Long-Term Performance
Till Investors has talked at length about studies showing that long-term performance results for sustainable investing are on a par with, or better than, traditional investment strategies. But what does that mean? And where might that performance advantage come from?
This short YouTube video from Brown Advisory’s Karina Funk, CFA, provides as good an explanation as we’ve seen. It’s a great introduction to what she calls “that intersection of strong financials, strong fundamentals, with sustainability over the long-term. At that intersection – not one or the other – that’s where we find some of the most compelling investment opportunities available over the next decade.”
Find out more about where the opportunities are and what she sees happening in specific industries.
Sustainable Investing Could Be a Way to Advocate Hard for Your Values
“Sustainable-only fund providers and the big-name players often have thematic funds in their lineup that are worth investigating. But if you want to find investments that hit hard on the values you care about, the place to look is ETFs.” That’s a line from Till Investors’ Fund Manager Profiles. The Profiles are where we try to point investors to investment opportunities and help people identify the strategies that suit them. And there are some remarkable opportunities out there!
Just one example: Impact Shares YWCA Women’s Empowerment ETF (ticker: WOMN). As the Profile says: “Impact Shares is a nonprofit that partners with other organizations to translate their social missions into investable portfolios. In this case, they have partnered with the YWCA to create an ETF that invests in the Morningstar Women’s Empowerment Index. They then donate any net profits from the portfolio back to the YWCA.”
Sustainable Investing Could Be a Way to Create Direct Impact
For most investors, broad sustainable funds or more targeted thematic funds are the right way to approach values-aligned investing. These types of investments are diversified and have a range of risk profiles that fits well in the typical investor’s portfolio. But as you become a more experienced and prosperous sustainable investor, you might find yourself looking for ways to have a more direct impact.
Here’s one way – among many – that you can take that step without taking on a lot of risk: community impact notes offered by community development financial organizations (CDFIs). They take in money from investors and use it to provide loans to local organizations that construct community improvements like affordable housing or education or healthcare centers. Through impact notes, it’s possible to have a very visible impact on a local community while getting your money back, with interest. Impact notes deserve more attention; one good starting place is Enterprise.
