ESG (Environmental, Social, Governance – socially responsible) Focused Portfolio

Objective: Growth of principle similar to broader stock market over time with a bias toward ESG socially responsible investing.

Person holding coins with plant growing out of them symbolizing environmentally conscious investing

Investment Strategy

The portfolio is designed to invest in active mutual funds as well as traditional and enhanced indexed investment strategies through tax and cost-efficient Exchange Traded Funds (ETF). Each ETF and mutual fund is thoroughly evaluated for its fees, strategy, market segment, risk, and corporate sponsor. It is the objective of the portfolio to diversify among smart (strategic alpha producing) beta indexed based ETFs. The smart beta portfolios typically seek underlying securities that represent strong corporate fundamentals such as earnings and growth to name a few. Strategic alpha is designed to seek a better risk adjusted return compared to traditional cap weighted indexed strategies.

The objective of this portfolio is to include ETF portfolios with broad diversification across the entire stock market. The portfolio may not react or perform similar to the broader capitalization stock market over the short-term due the alpha seeking portfolios that are seeking a better risk adjusted return and the faith- based initiatives of each fund. The portfolio is expected to perform similar to the broader stock market over the long-term based on historical performance. The portfolio includes securities where the underlying corporation is responsible in the area of environmental, social and governance.

Environmental criteria consider how a company performs as a steward of nature or the environment. Social criteria examine how the company manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

Maybe suitable for the following investors:

  • The need minimal or no dividends or cash flow
  • The need for growth of principal similar to the broad market over time
  • Prefer a portfolio with a bias toward stewards of the environment, socially responsible and
    appropriate governance criteria.

Available Variants:

  • Domestic or Global
  • Conservative through Aggressive (Fixed income allocations are based on risk tolerance. **The
    fixed income portion of this portfolio is allocated to the Conservative Fixed Income Portfolio)

Past performance does not guarantee future results. There is no guarantee the investment objective will be met. All investment strategies are designed but not guaranteed for the long-term.