Here are some investing options for 2021 — with climate change in mind

Excerpt from article published Tuesday, December 22, 2020 on

If you’re like most Americans, you worry about global warming. Yet it can be hard to know how to channel that anxiety into action that will help the planet.

One fairly simple way to make a difference is to be more selective about the companies you invest in. Brokerage firms such as Fidelity, as well as robo-advisors Betterment and EarthFolio, are now making that easier to do.

What’s more, research shows you don’t necessarily have to take a hit to your bottom line to make an impact. So-called sustainable funds outperformed their conventional fund peers in 2019, according to Morningstar.

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“Historically, there’s been a notion that investors seeking to integrate their values into their investments need to sacrifice returns,” said Boris Khentov, senior vice president of operations and legal counsel at Betterment.

“But more recent research continues to demonstrate that such assumptions are questionable, at best.”

In 2021, you may want to allocate some of your money toward funds with a focus on addressing climate change. Below are some of the options.

Blue Marble, which owns robo-advisor EarthFolio, has been around for 20 years, but Art Tabuenca, its founder, said he’s “seen a dramatic increase in interest over the past two years as climate change and social equality issues have become a major concern, financially and politically, for a majority of Americans.”

Clients can choose portfolios that are low carbon or fully divested of oil, coal and gas. Its bonds invest in a range of climate-related projects, including habitat restoration, zero-emission public transport and solar farms.

The annual management fee is 0.5%. You can rollover a retirement account to EarthFolio, or open an investment account, but you need at least $25,000 to do so.

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