Increased environmental awareness has lead to increased investment options, according to The Wall Street Journal.
Global warming has helped stoke the interest. “It’s not just tree huggers,” said Holly Isdale, managing director in charge of wealth advisory services at
Increasingly, investment advisors have urged brokers and investors alike to consider the impact of climate change on portfolios. Meanwhile, fund companies have introduced new mutual funds and exchange-traded funds that take into account factors such as public policy change, philanthropy and land conservation movements.
Still, investing in the environment can be as unpredictable as the weather. For one thing, many of the available products are overseas, which immediately makes them pricey. For another, many technology innovators tend to be smaller or start-up companies, which means they are more volatile, said Kurt Reiman¸ who heads thematic research
Finally, much depends on consumer sentiment. If the interest in eco-conscious hybrid cars and other such product turns out to be a fad, portfolios will suffer.
Still, so far, these so-called socially responsible products have performed well.
However, expenses on socially conscious mutual funds continue to be a stumbling block. For example the