An ETF For The Soul; New Socially Responsible ETF Avoids Genocide
If you find yourself in the socially responsible investing camp, then the ETF Professor has some good news for you. iShares is planning to introduce a geoncide-free ETF that will take a pass on companies companies that do business in countries with genocide conflicts (i.e. Sudan).
Obviously, socially responsible investing focuses on more than just avoiding war-torn geographies. This investment style also eschews oil, tobacco, defense contractors, gaming stocks and others.
The Professor warns that socially reponsible investing is tricky in emerging markets and you may be cheating yourself out of better returns.
Take a look at the performance of iShares KLD Select Social Index Fund (NYSE: KLD) and the iShares KLD 400 Social Index Fund (NYSE: DSI). These two socially responsible ETFs are up about 25% year-to-date.
On the other hand, the iShares FTSE/Xinhua China 25 Index (NYSE: FXI) is up close to 60% and the iShares MSCI Malaysia Index (NYSE: EWM) is up 50% in the same time frame.
