'Green' bonds not only have positive environmental consequences, but they are also beneficial to your portfolio, said Stephen Liberatore, portfolio manager for the TIAA-CREF Social Choice Bond Fund (TSBRX) - Get Report . 'Green bonds offer companies and municipalities the opportunity to talk about the good things they are doing and that is making them very popular with millennials,' said Liberatore. 'The attractive yields and total returns make them attractive to me.' The TIAA-CREF Social Choice Bond is an actively managed fixed-income fund that invests in investment-grade securities that meet certain environmental, social and governance (ESG) criteria. In addition to filtering out companies that don't meet the fund's social guidelines, Liberatore proactively targets 10 percent to investments in socially beneficial companies and projects such as affordable housing, community or economic development, renewable energy and natural resources. The TIAA-CREF Social Choice Bond Fund is up 3 percent thus far in 2016, according to Morningstar. The $749 million fund has returned an average of 3.5 percent annually over the past three years, outpacing 98 percent of its Morningstar category peers.