Consider gifting a portion of annual returns as a socially responsible (ESG) investment strategy

Casey Bear |

Filtering investment decisions through a values-driven lens has become one strategy investors can use to create a portfolio that considers Environmental, Social, and Governance (ESG) factors.  While ESG funds and other socially responsible investments may offer an attractive risk-return profile, an ESG funds-only strategy can add undue risk and expense to a portfolio.  Fortunately, there is an alternative method to achieve similar ethically-inspired ends: take advantage of the returns which mainstream investment vehicles can provide to fund organizations that meet your individual ESG mission.  Instead of investing directly in ESG funds, choose to give a portion of your annual diversified portfolio returns to socially responsible organizations directly, and see the immediate effects your donation can make.  An example might involve withdrawing a set amount, say 10%, of your total annual gains to support a local wildlife refuge or poverty outreach center.

To learn more about how you can use charitable contributions to make a meaningful impact on the people, causes, and organizations that are important to you, contact a Cranbrook Wealth Management investment advisor.