There are many “socially responsible” mutual funds and ETFs that are now available. Most focus on stripping out investments in areas that conflict with your own values including alcohol, tobacco, firearms, gambling, or fossil fuels, but stop there. This “negative screen” often results in lower returns.
Aspiration’s sustainable investing does this, too. It eliminates investments in fossil fuel companies and firearm manufacturers. But then it goes further. It moves beyond “don’t do bad” to “do good.” Aspiration invests in what it calls “High-Road Businesses” that take materially significant environmental, social, and governance actions because they lead to greater long-term growth.