Naughty or Nice Part Two: More Investment Ideas
Last week, we looked at investment ideas that focused on the Sin Category of stocks (liquor, tobacco, gambling, fast food, you get the idea). Here are some ideas that may be of interest to you if you are looking to change the world in a more positive way.
PAX Balanced Fund (PAXWS)
Strategy: The fund follows a sustainable investing approach, combining rigorous financial analysis with equally rigorous environmental, social and governance (ESG) analysis to identify investments. The adviser normally expects to invest approximately 60-75% of its assets in equity securities and approximately 25-40% of its assets in debt securities, though this allocation may vary somewhat depending on market conditions.
10-year average annual return: 4.05% vs. 5.07% for similar allocation funds (50% – 70% stocks)
Fees: No sales load, .93% expense ratio – average for the category
PAX Ellevate Global Women’s Index Fund (PXWEX)
Strategy: Generally in the component securities of the Women’s Index and in both in the US and internationally. Top holdings include Microsoft, Salesforce.com, Johnson & Johnson, and Texas Instruments.
10-year average annual return: 3.51% vs. 3.98% for comparable World Large Stock funds
Fees: No load, .9% annual expense ratio – average for the category
Fidelity Select Environmental and Alternative Energy Portfolio (FSLEX)
Strategy: Investing primarily in companies engaged in business activities related to alternative and renewable energy, energy efficiency, pollution control, water infrastructure, waste and recycling technologies, or other environmental support services. Investing in domestic and foreign issuers. Top holdings include 3M, OwensCorning, Danaher Corp, and Honeywell.
10-year average annual return: 5.61% compared to 2.68% category average
Fees: No sales load, .94% annual expense ratio – below average for the category
So, there you have it. Ways to direct your money toward the lowest or highest instincts of human behavior. Good luck choosing which one will be more successful over time!