The Morningstar Sustainability Rating for Funds provides a reliable, objective way to evaluate how investments are meeting environmental, social, and governance challenges. In short, it helps investors put their money where their values are.
The rating is now available for more than 20,000 funds worldwide and can be found on the right-hand side of fund quote pages on Morningstar.com.
Investors who care about sustainable investing can use the articles and videos below to learn more about the methodology and how they can incorporate these new ratings into their research process.
Introducing the Morningstar Sustainability Rating for Funds
Our new Sustainability Rating provides a reliable, objective way to evaluate how investments are meeting environment, social, and governance challenges.
Sustainability and Quality Go Hand in Hand
We find that funds with high sustainability ratings tend to have higher-quality holdings.2
Are Sustainable Funds More Expensive?
Socially responsible investing doesn't have to cost more.
2 Options for Gender-Lens Investing
Investing in these diversified portfolios of quality companies can signal support for more women in corporate leadership positions.
Climate-Aware Fund Investing
Three ways to incorporate climate concerns into your large-cap funds portfolio.
Finding Sustainable Small- and Mid-Cap Funds
5-globe small- and mid-cap funds are less risky and hold stocks of larger, higher-quality companies.
Sustainability-Focused Funds Garner Positive Flows in 2016
Parnassus Funds gained assets last year. Plus, new options make it easier to build SRI portfolios.
Sustainable Investing in Fixed-Income Funds
The choices are expanding for investors wanting bond funds that incorporate ESG.
Sustainable Investing Research Suggests No Performance Penalty
Review of academic studies show sustainable/responsible funds perform on par with conventional funds.
Eaton Vance Makes Move Into Sustainable Investing
Acquisition of Calvert reflects heightened interest in ESG among conventional asset managers.
Parnassus Mid-Cap: Compelling ESG Fund at a Reasonable Price
With a rigorous ESG process, reasonable costs, and good performance, this fund is one investors should keep their eyes on.
What's New in Sustainable Funds
There are more options than ever for socially conscious fund investors.
How Do You Grade a Company’s Sustainability?
Morningstar’s Jon Hale explores how Sustainalytics does the firm-level research that underpins our sustainability rating for funds.
Sustainable Large-Blend Options That Have Beaten the Best
These 24 funds have high sustainability ratings and have beaten the Vanguard 500 Index Fund over the last decade.
How ETFs Are Incorporating Sustainability
A spate of recent launches has given sustainable investors a greater range of diversified choices within the U.S. ETP universe.
These Low-Turnover Medalist Funds Are Sustainable, Too
While faster-trading funds' sustainability scores could prove ephemeral, these offerings are likely to retain high marks.
7 Sustainable Large-Value Funds
These Medalist funds could be good fits for investors considering sustainability factors.
Solid Emerging-Markets Funds With High Sustainability Ratings
Though most focus on larger companies in developing markets, these Morningstar Medalists span the value-growth spectrum.
The Value(s) of Sustainable Investing
New data show professional investors overwhelmingly believe there is a link between corporate sustainability and long-term financial performance.
Unintended Biases in ESG Index Funds
ESG index strategies can be effective tools for values-based investing, but they may introduce some additional bets that investors may not intend to make.
Large-Growth Medalists at the Extremes of Sustainability
Quite a few good large-growth funds earn high Sustainability Ratings despite not being explicitly ESG-oriented.
How Sustainable Is Your 401(k) Plan?
Even funds without an intentionally sustainable mandate can score well under our Sustainability Rating methodology.
Do Morningstar Medalists Have Higher Sustainability Ratings?
The initial data suggests yes, though it's too early to draw hard conclusions.
Sustainable Funds Are Walking the Walk
Morningstar's Sustainability Rating confirms that funds seeking to invest in sustainable companies have been finding them.
Should Investors Care About Sustainability? (video)
Investors who want to have an impact may wish to allocate their capital to companies and funds that are better sustainability performers, says Morningstar's Jon Hale.
How Can You Tell if a Fund Seeks Sustainable Investments? (video)
Morningstar's Jon Hale walks through the nuts and bolts of calculating the new sustainability rating for funds.
Expanding the Universe of Sustainable Funds (video)
Morningstar's new sustainability rating gives investors an independent assessment of how funds' holdings stack up on environmental, social, and governance matters.
5-Globe Medalists by Category
These strong funds score well on Morningstar’s new Sustainability Rating.
Mainstreaming Sustainable Investing
Morningstar’s sustainable investing initiative will have several important implications for the field of sustainable investing, writes Jon Hale.
Can ESG Investing Mitigate Risk in Emerging Markets?
James Donald, emerging markets fund manager at Lazard, only invests in companies which treat all shareholders in a fair and equal way.
Millennials are Leading the Way With Sustainable Investing
Millennials are adopting lifetstyles mindful of their impact on society and the environment - and they want their investment portfolios to reflect this commitment too.