Sustainable and Climate-Focused Investments Yield Strong Return
Fossil-free funds are proving investors can generate a profit and make everyday Earth Day
San Francisco, CA, April 22, 2016 (Newswire.com) - With 2015 as yet another hottest year in history, this Earth Day is all about investing in our planet's future. Thousands of individual and institutional investors have committed to begin divesting from fossil fuels, with pledges now above $3.4 trillion in assets under management. Just last week, Yale University committed to partially divest its $25.6 billion endowment portfolio from certain fossil fuel companies, joining Stanford University, Rockefeller Brothers Fund, CalPERS, Leonardo DiCaprio and thousands of individuals and institutions around the world.
Earth Day serves as a reminder that investor action can advance environmental solutions. As Katie Hoffman, of the Divest-Invest network explains: "This Earth Day, we are not just shutting off the lights or recycling, we are shifting capital markets to address climate change."
"Our core thesis is that smart sustainable investing yields higher returns because you're investing in companies that are more efficient and better managed than their competitors."
Ian Monroe, Etho Capital
Wall Street is starting to get the message. Investment solutions focused on optimizing sustainability and financial performance are coming to market rapidly, and research from sources like Morningstar, Oxford University, and Stanford University shows that sustainable investment funds often yield higher returns than conventional market benchmarks, like the S&P 500. A growing number of mutual funds, and a handful of exchange-traded funds (ETFs), are leading the way to provide investors with sustainable and climate-friendly options.
"Our core thesis is that smart sustainable investing yields higher returns because you're investing in companies that are more efficient and better managed than their competitors," says Ian Monroe of Etho Capital, which released its ETHO ETF on the NYSE in November. The ETHO ETF just closed out the first quarter of 2016 outperforming almost every major benchmark, all while significantly reducing climate pollution per dollar invested.
While past performance does not indicate future returns, this Earth Day is a perfect time to explore how you want your investments to support the future of the planet.
Source: Katie Hoffman Managing Partner Resilience Collaborative