If the idea of guns, mining, gambling or sugary drinks doesn’t sit well with you, why would your invest your money in companies that make millions from them?
That’s where the concept of ethical investing comes in, which is drawing a connection between your beliefs and your investments.
Claude Walker from Simply Wall St says there is a better way to make money while keeping your moral compass intact.
While there is limited data on whether ethical investments will perform better than traditional companies, Walker says you can still make a good return.
“There is mounting evidence though that over the longer term, it’s quite likely that strategies that include consideration of environmental and social factors may do better.
“We don’t exactly know why this is, but its probably because there are less skeletons in the closet of those kinds of companies.”
Younger people have been the first to jump on this trend.
Walker shared his tips for people looking to invest more ethically, including sustainable-focused ETFs (exchange-traded funds) that are collections of different companies.
“I think when you look for the intersection of ethics and good business, you can find some great stocks,” Walker said.