Investments Cont.

The variety of offerings has become much more extensive than it was only five years ago.  The popularity of ETFs (Exchange Traded Funds) has grown rapidly.  These vehicles are, to put it simply, mutual funds trading as individual stocks.  They are as liquid as an individual company stock, but may incorporate many companies in the same business, such as solar companies or energy companies.  It allows a person to be more diversified within a sector.

Now, we add the layer of environmentally-friendly companies to the mix!  There are mutual funds that exclude cigarette manufacturers or other companies that certain investors may not want among their investments, although they want a mutual fund that includes a variety of companies to provide diversification.

There is also research to be found on individual companies to inform investors as to the commitment they have made to operate in an environmentally responsible manner.  This allows the investor to purchase a company’s stock knowing that they agree with his ecological standards.

As you can see, it is possible for the individual investor to achieve a portfolio that is in line with his “green” philosophy, but it requires some investigation and decision-making in order for it to be successful!