Wide Open Wallet
An honest look at family finances
Green living: Green stocks
Author: Ashley19 Aug
It’s Tuesday again, which means we are going green. Just a reminder that this series has been inspired by David Bach’s latest book, Go Green, Live Rich. And you can enter to win this book by leaving a comment on Green Living days.
This is the last installment of Green Living. I will be announcing the winner of the book next Monday. So make sure you get all your comments in before then.
In 1862, Secretary of Treasury Salmon P. Chase decided to make our money green. While he probably wasn’t trying to give us stock tips, it might not be a bad idea it take it as a sign. Socially responsible investing (or SRI for short) is growing ever more popular these days. According to David Bach, there is currently $2.3 trillion invested in SRI stocks.
If you are interested in greening up your portfolio there are several ways to go about it. Calvert Funds offers both index based and actively managed SRI funds. David Bach specifically mentions Calvert Large Cap Growth Fund (CLAGX) which he states has beat the S&P 500 over the past 5 years. He also suggests Winslow Green Growth (WGG) stating that it is the best performing green mutual fund over five years.
The KLD Select Social Index contains stocks that are socially and environmentally conscious while providing a risk and return similar to the S&P 500. It’s important to note that some green funds take an index or similar fund and “screen out” companies such as tobacco companies, this “greens up” a fund by taking away the stocks that negatively affect society. Other funds “screen in” green companies and only allow companies that make a positive impact to the environment or society.
David Bach mentions many mutual funds and I want to mention them here in case you are looking to green up your portfolio. There is the Winslow Green Growth (WGGFX) and states it is the best performing green fund for the past 5 years. It is a small growth fund that invests in domestic companies. There is also the Green Century Equity Fund (GCEQX) and the Green Century Balanced Fund (GCLBX). The first tries to mimic the Domini 400 Social Index and the second invests in green companies of various sizes.
If you are interested specifically in renewable or cleaner energy David Bach lists plenty of options, such as The New Alternatives Fund (NALFX) it invests in alternative energy and companies that are involved in clean air and water. There is also PowerShares WilderHill Clean Energy (PBW) which is the largest renewable energy fund. WilderHill Progressive Energy Portfolio (PUW) invests in companies that are involved in improving our current use of fossil fuels.
So how do you feel about green stocks? Are you currently invested in a green fund? Do you think green investing is for crazy people? Leave a comment for a chance to win the book! ***Contest has ended***
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7 Responses for "Green living: Green stocks"
My turn to win!
Smart Money Magazine just had an article about investing green (it came in yesterday’s mail). It indicated that their picks from the beginning of the year to now had gone up significantly from Jan to June, but then plummeted, leaving only one of their picks in the black (or the green, if you’d rather). It was interesting reading - you might want to pick it up!
Obviously biased, but Calvert offers a variety of strong performing SRI funds, the newest of which focuses on Global Alternative Energy and is a good (active) alternative to the 2 WilderHill products, which are both Index-ETFs.
New to the forum, etc., and look forward to more good info to come!
Until the problem of climate change abates, investing in ways to both combat and accommodate it will flourish. However, discerning what will be successful among them is another matter!
For your information, I’ve been following green-ethical investing for around forty years and have a website which covers all the latest global green and ethical investing news and research. It’s at http://investingforthesoul.com/
Best wishes, Ron Robins
Great post! Your list has a number of great choices for people looking for green investment opportunities. Just keep in mind that not all socially responsible companies are green, just as not all green companies are socially responsible.
I posted about my favourite green investments a few weeks ago at http://moneygrubbinglawyer.com/2008/08/05/investing-green/ . While I am somewhat motivated by investing ethically, admittedly my main motivation is the potential for profits from this growing sector.
I am going to be sorry to see this series end; I have gathered great information from it. I do hope you are planning another like it.
Real curious about the “greener stacks”. I am almost sure to have to buy this book.
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