The Socially Responsible ETFdb Portfolio is now available to ETFdb Pro members and those with a free 7-day trial of the Pro subscription. This new portfolio, one of more than 30 all-ETF model portfolios available at ETFdb.com, is designed for risk-averse investors who wish to construct a well rounded portfolio that tilts exposure to companies which are deemed to posses positive, socially responsible characteristics. The investment thesis behind the Socially Responsible ETFdb Portfolio may appeal to those who are bullish on the global economic recovery, but wish to avoid exposure to stocks in the alcohol, tobacco, firearms, and gambling industry.
This ETFdb portfolio is geared towards investors who wish to maintain broad-based exposure to firms which exhibit positive environmental, social, and governance (“ESG”) factors. Aside from the moral aspect, socially responsible investing may be appealing for a variety of other reasons as well; there is a fair amount of evidence suggesting that stocks with higher ESG scores tend to outperform the broad markets over the long term. This is perhaps because socially responsible companies have a tendency to maintain a favorable public perception, which can help with the avoidance of legal troubles, which generally translates into lower overall risk and higher customer loyalty.
The Socially Responsible ETFdb Portfolio is split 60/40 between stocks and bonds respectively. The equity component is well diversified internationally, although exposure is certainly tilted towards U.S. equities. Some of the firms included in this portfolio are well-known industry giants like IBM, Johnson & Johnson, Google, and Procter & Gamble. The fixed income component is also well diversified; this portfolio uses three ETFs to cover a vast range of securities from the global bond market. Exposure to U.S. Treasuries, international government bonds, as well as emerging market debt securities is included.
The complete Socially Responsible ETFdb Portfolio is available to ETFdb Pro members or with a free 7-day trial to ETFdb Pro. Also check out our new Financials Free ETFdb Portfolio , as well as our Cheapskate Hedge Fund ETFdb Portfolio.
Also included with the ETFdb Pro subscription are more than 30 all-ETF model portfolios, including both retirement-focused and more tactical themed strategies. [To see all that is included, a free sample of the Emerging & Frontier Markets ETFdb Portfolio is available to all ETFdb readers]
Disclosure: No positions at time of writing.