Socially Responsible Index Funds Revive
Microsoft's resurrection boosts funds.
After a particularly tempestuous 2000, many socially responsible index funds are sailing smoothly in 2001.
Although they suffered for their allegiance to Microsoft in 2000, socially responsible index offerings like Domini Social Equity (DSEFX), Vanguard Calvert Social Index [VCSIX], Citizens Core Growth (WAIDX), and TIAA-CREF Social Choice Equity (TCSCX) have seen their collective commitment to the software giant pay off this year. Microsoft was smacked hard last year amid its antitrust woes and investors' disdain for PC-related names, and some socially responsible managers even debated kicking it out of their portfolios because of concerns that it was pushing out the little guy in the software industry. However, they all held on, and the stock has gained more than 50% this year and is one of the market's few bright spots.
Catherine Hickey does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.