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Aron Szapiro, head of policy research for investment advice company Morningstar, MORN, +0.91% thinks access to ESG funds in employer plans is a good step. “I don’t think there’s much of an argument to be made for restricting these funds,” Szapiro says. Plan participants seem to agree: According to a 2021 survey by investment management firm Schroders, SHNWF, -2.81% when participants know their defined-contribution plan offers ESG options, 9 out of 10 say they invest in them.
And according to Marguerita Cheng, a certified financial planner, chartered SRI counselor and CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland, sustainable investors can really tailor their portfolios to their values. “What may be socially responsible for one person may not be for another, because this is very personal.
2. Invest in sustainable stocks Individual stocks are typically riskier than funds since they don’t have the diversification of holding multiple companies, but they do let you have full control over which companies you’re investing in. For example, you can find renewable energy stocks if you’re passionate about green energy, or invest in companies with a diverse set of board members.
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