This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Five Eco-Friendly Funds

Al Gore won the Nobel Peace Prize , the Vatican is going carbon neutral and Australia is phasing out incandescent light bulbs .

So what can you do to help make the world greener? Why not check out mutual funds that specialize in eco-friendly investing. The sector has grown rapidly in the last few years. According to Michael Herbst, an analyst at Morningstar, net assets of the 10 actively managed green mutual funds the firm tracks have increased by 414% over the last three years.

If this kind of approach appeals to you, here are some places to start:

The (PORTX) Portfolio 21 Fund (PORTX). Like traditional socially responsible funds, this one excludes companies in the nuclear energy, tobacco, gambling or weapons industries, as well as companies with poor records in employee relations, human rights, community involvement and product safety.

Unlike traditional SRI funds, it selects only companies whose business models meet one or more of these criteria:

  • They are designed to succeed under ecological constraints
  • They work toward reducing the ecological impacts of their products or services
  • They invest in the environment
  • They make environmental sustainability a priority
  • They have strong environmental management
  • They use resources efficiently
  • They reduce their greenhouse gas emissions and the risk of toxic spills

The fund recently held about 23% of its assets in U.S. stocks, with the rest divided among shares of established companies in countries ranging from Australia to Finland.

Since its inception in 1999, the Portfolio 21 Fund has outperformed both the S&P 500 and the MSCI World Equity Index. The fund has also outpaced both indices over one-, three- and five-year periods.

The fund's top holdings include Nokia (NOK), IBM (IBM), HSBC (HSB), Novartis (NVS) and Canon (CAJ)

Green Century Capital Management offers two environmentally friendly funds. Both avoid companies involved in nuclear weapons and nuclear energy; tobacco; fossil fuel; animal testing for non-medical purposes; factory farming; genetically modified organisms and agricultural pesticides. The funds also favor companies that respond well to shareholder initiatives.

The (GCBLX) Green Century Balanced Fund (GCBLX) invests about 25% of its assets in bonds and not more than 75% in stocks. This fund invests in companies whose products and services demonstrate a commitment to enhancing and preserving the environment; companies with clean environmental records who disclose their policies and performance on certain environmental criteria; and companies that promote a healthy environment through methods such as renewable energy.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs