What is socially responsible investing?
The idea behind investing is simple: We work hard to make money, so our already made money should work as hard as we do to bring us more bang for our buck, so to speak. Socially responsible investing, or any other such phenomenon, seems counterintuitive to the concept of investing, whose primary motive is to generate a profit.
Socially responsible investing is known by several terms, including sustainable investing, green investing, and ethical investing. Certain ETFs (KLD) (KRMA) (WIL) and mutual funds (NBSRX) (PAXWX) invest on this theme.
The need for socially responsible investing
Put simply, socially responsible investing is the practice of making money by investing in companies that are doing good things on the side. This concept has been around for awhile, but it has gained traction mostly in this century. The US SIF, the Forum for Sustainable and Responsible Investment, describes itself as “the leading voice advancing sustainable, responsible, and impact investing across all asset classes.” It aims to “rapidly shift investment practices towards sustainability, focusing on long-term investment and the generation of positive social and environmental impacts.”
The forum publishes a biennial Report on Sustainable and Responsible Investing Trends in the United States. The 2014 edition, the latest available, shows that at the end of 2013, $6.6 trillion or more was invested according to SRI strategies.
These factors are incorporated into socially responsible investing as well as responsible investment. Let’s take a look at the difference between the two in the next article.
Some issues considered under the environmental criterion when evaluating a company’s products and practices are pollution, carbon emissions, and resource depletion.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.