The “Socially Responsible” Scam

Popular “socially responsible” investment funds advertise: “Make money AND help the world!”

But they often do neither. Their funds are usually higher priced marketing gimmicks.

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Blackrock’s “environmentally responsible” fund still invests in oil giants Exxon and Chevron.

Their fund brags that they do good by having 2.6% more exposure to gender diverse boards. But that’s a tiny difference.

Investment firm Parnassus has a fund that it claims it does good for the world by investing in companies like US Foods and Clorox, because those companies make products that help meet UN sustainability goals.

Come on. Those are useful products, but they’re not more “socially responsible” than normal investments.

Investing in “socially responsible” or “sustainable” funds usually means you pay higher fees to invest in feel-good nonsense.

Even worse, “socially responsible” funds can backfire. Some green funds oppose fracking — but the U.S. led all countries in reducing carbon emissions lately, mostly because fracking’s natural gas reduced demand for dirty coal and oil.

Watch the video above for more about how “socially responsible” funds cost you more to accomplish nothing good for the world.

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