Sustainable International-Stock Fund Options Are Growing
Investors have a variety of choices, but many of them are young.
For those interested in building a portfolio around sustainable investing, this may be a good time to select a core international-stock fund. International stocks have outperformed U.S. stocks so far this year, prompting investors to pump money into international-stock funds. That's not a bad idea for those who may have let their non-U.S. equity allocation dwindle since the market bottomed in early 2009 as international stocks lagged well behind their U.S. counterparts over that period. Many investors probably remain underexposed to international stocks even after this year's first-half performance.
With 14 open-end funds and three ETFs that focus on non-U.S. equities in developed markets, sustainable investors have an array of choices to choose from for their core international exposure. These are funds that clearly state, by prospectus, that sustainable investing is an integral part of their investment process. Seven are active funds, seven are index funds, and three others are passive or quasi-passive portfolios based on indexes.
Jon Hale does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.