HoldingsApple, Google, Microsoft, 3M, Kellogg's, and more
Think doing good can pay off? Have a look at the “Do the Right Thing” investment on Stash. The concept is that companies making a positive impact on society and the environment may have long-term performance advantages. It’s just one of the “I believe” investments you can find using the “discover” tab on Stash.
What’s this investment all about?
Do The Right Thing is an exchange traded fund (“ETF”) called iShares MSCI USA ESG Select ETF. There are a lot of ways funds pick companies to include, like industry, company size, location, and every manner of historical performance. This fund adds another screen: Companies that have high “ESG” (environmental, social and governance) scores. You won’t find companies in this fund that make money from alcohol, tobacco, gambling, guns, porn, or nuclear energy – these are the good guys. They set the standards when it comes to things like sustainability, human rights, giving back, and executive compensation.
What companies does this investment include?
Do The Right Thing provides exposure to over 100 companies that care. At the time of this post, the biggest holding is 3M. Yes, they make Post-It notes. But they’ve also given more than $1.4 billion to education, communities and the environment. Another big holding is Eco Labs, which helps restaurants, hotels, supermarkets, food and beverage manufacturers keep their food and drinks safe for consumers (“I’ll have the chicken, hold the salmonella please”). Eco Labs has many social responsibility programs, including “Solutions for Life”, which helps conserve water and improve hygiene around the world. The Ecolab Foundation has also donated nearly $81 million to educational, cultural, environmental and community development programs. A third holding is Henry Schein, Inc., a medical supply company that garnered a “World’s Most Admired Companies” award from Fortune in 2015. The company’s “Henry Schein Cares” program helps provide healthcare for underserved and at-risk populations around the world.
Who is this investment for?
Maybe you want to sleep well at night, knowing your money is behind companies that make doing good a priority. If so, you are part of a growing trend toward investing along with your passions. Maybe you think doing good could translate into better performance over time. Maybe both. After all, you don’t necessarily have to sacrifice results in order to do what you feel is right.
Why did it make the cut on Stash?
For the nitty gritty, take a look at the underlying fund. As you’ll see, it performed just about as well as the overall market over the past few years. It has a low 0.5% expense ratio, so the fund isn’t spending too much on the management fees, and costs for administration and marketing that can eat into your returns. And this is a fund created and managed by iShares, a division of BlackRock – one of the biggest and most reputable firms in the business.
What are some other investments like this?
If you like the idea of investing based on what you believe in, here are a few other Stash investments to check out:
- Water the World. Companies that supply the critical demand for water as the population grows.
- Clean and Green. Clean energy companies including providers of solar and wind power.
- Equality Works. Companies that provide LGBT employees with equal rights and respect.
- Defending America. Aerospace and defense companies that help the military secure our skies.
Note: These are just a few of the investment choices available on Stash and may not be suitable for everyone. Depending on your risk profile, you may not see the investments on Stash. See our Disclosures.