Investing With a Conscience: Socially Responsible ETFs Explained
We’ve talked before in previous posts about the great potential upside of Exchange-Traded Funds (ETFs) Remember, at Firstrade, all of our 2,300 ETFs are commission free and we make it easier to select the right ones for you.
In the current market, ETFs — baskets of stocks, bonds or commodities — have become increasingly valuable investment tools for self-directed investors seeking greater portfolio diversification, reduced risk, increased flexibility and tax efficiency through exchange-traded investing. Investors can choose from a wide array of funds in virtually any sector, industry or asset class.
A particular segment of the ETF market includes so-called “socially responsible” ETFs, which are becoming increasingly popular with investors interested in combining a sound investment strategy while supporting funds that adhere to social, moral or environmental standards, among others. A socially responsible ETF generally will track ethically sound companies, such as those adhering to only the highest standards of corporate governance and citizenship.
Many of these ETFs are an excellent way to invest around themes. For instance, funds may track companies that seek to advance the role of women through gender diversity or those that emphasize the protection of the planet through a commitment to reducing their carbon footprints. Additional examples of socially responsible ETFs include those tracking companies with proven reputations for supporting social causes and giving back to their communities.
What you will surely not find in any socially responsible ETFs are “sin stocks” including those in gambling, tobacco, alcohol and gun industries that socially responsible investors believe are “bad” for society.
So, if you’re interested in socially responsible ETFs, do your homework to learn about socially responsible investing. Think about your values, and the kind of causes or social programs you would want to support. But keep in mind that you are still investing your hard-earned money so pay attention, do your research and be sure to think about diversification in your investing strategy as well.
Regardless of how you chose to invest, remember that Firstrade customers have access to more than 2,300 ETFs, including several of the leading socially responsible ETFs.
The U.S. ETF industry recently hit a milestone, recording nearly $4 trillion in assets, according to data on ETF.com. ETFs are widely expected to continue their growth in popularity, making Firstrade’s no-cost trading even more attractive and timely for investors.
Want to choose the right ETF for you? Check out our thousands of free ETFs, and start commision-free trading here.
Manage, Invest and Spend Your Money All From One Account.
Cash management accounts are becoming increasingly popular, particularly on the international scene. So, what is a CMA?
If you conduct most or all of your banking online, you’re likely familiar with the kinds of features that a CMA has to offer. Basically, it’s a cash account that combines services and benefits that are similar to checking, debit card and investment accounts under one product.
Often, CMAs are able to offer low or no fees thanks to the low overhead of online-only services and assistance. Who needs to come face-to-face with a teller anymore anyway?
In this fast-paced world, a Firstrade Cash Management Account provides you the flexibility to trade, access and spend your money all in one account. Your cash will be in the same account as your trading funds, so you won’t miss any market opportunities when it comes to trading wherever you are.
For the international market, our product is easily accessible since there is only a $100 minimum. You can trade U.S. stocks commission-free. Our CMA has no maintenance, annual or application fees. And, you get our global ATM card for international use and convenience.
How else can you benefit?
You will have no liability for unauthorized transactions if you promptly report the loss or theft of your card and report any unauthorized transactions.
You’re covered with free travel safety insurance if you purchase tickets through our registered travel office.
You can speak with a Firstrade Cash Management Account specialist to learn how to set up your account, activate features and more.
To learn more about a cash management account at Firstrade, go here.
Let’s Have More Babies?!?
A recent Barron’s article by Jack Hough, “Bet on a Baby Bounce,”(link) presents an intriguing (and somewhat tongue in cheek) argument that the economy will do better if millennials simply decide to have more babies. Sounds reasonable, right?
He cites Bank of America data that while overall births have declined in nine out of the last 10 years, births have risen modestly by 0.9% among women between the ages of 35 and 39. Children born to women between 40-44 have increased as well. Hough reasons that “couples are waiting to have kids, but they haven’t quite forgotten how.”
Hough even cheekily suggests that the growth of streaming services such as Netflix and the upcoming launch of Disney and Apple services may lead to a surprise uptick in baby births. “All that couch time could drive a year-over-year expansion in funny business. That’s just science,” he surmises.
More seriously, Hough contends that the longer millennials wait to have children, the more disposable income they’ll have to spend on their children and this will benefit the many companies that serve the baby market and help spark the overall economy. He further maintains that fertility rates, not just in the U.S. but in other countries, can be important economic drivers, with population growth playing a major role in economic gains.
When thinking about your own investment strategies, reviewing data and indexes are of course important, but don’t forget to follow cultural changes as well, particularly among millennials.
Hough’s conclusion: let’s have more babies and millennials should lead the way:
“Let’s start pressing millennials to have more kids. Don’t be afraid to tap strangers on the shoulder on line at Chipotle. Also, Congress should expand the Federal Reserve’s mandate to include spicing up national romance. Don’t laugh: Chairman Jerome Powell is one of six kids, and he has three of his own. That guy knows a thing or two about getting the economy going.”
So, get busy millennials, it’s your patriotic duty!
Your thoughts?
What Are Friends For?
Friendships are some of the most valued relationships we can have in life. In good times and bad, we rely on our friends, we have fun with them and we lean on them when we need a shoulder.
At Firstrade, we now have a great way to show your friends and loved ones that you care. And even your acquaintances too— and soon enough, you’ll have new BFFs!
We’ve introduced our “Refer Friends, Get Free Stocks” program to help new investors take their first step in their investing journey without a deposit requirement. You can start referring friends from your smartphone, using our newest iOS or Android apps or on our website.
Now you can ask someone you know to open an account at Firstrade and you’ll both receive a free stock courtesy of Firstrade. How great is that?
New customers can also participate by simply opening a brokerage account with us.
Here’s how it works:
Ask your friends to open a Firstrade account. Just send them your unique referral link to ask them to sign up now.
Once your friend’s application is complete and approved, you will each receive your free stock, courtesy of Firstrade.
Keep track of your referrals to remind your friends to open a Firstrade account and take advantage of this great opportunity.
Each time a friend opens an account at Firstrade, you’ll be 100% guaranteed that you and your friend will receive a free stock. You and your friend will also have a 1 in 100 chance of receiving a free stock from Apple, Facebook or Microsoft.
Don’t Delay! For full details and to refer friends, click here.
Firstrade Named Best for Active Traders, Commissions and Fees, and ETFs by Kiplinger’s Personal Finance
Our customers know best. They choose Firstrade. For that, we thank you.
Today, Kiplinger’s Personal Finance announced its Best Online Brokers of 2019 and Firstrade ranked as a best broker for Active Traders and the number one choice for best commissions and fees and for ETFs. We also ranked third, among ten other brokers, as best for investment choices.
Kiplinger’s editor Mark Solheim explains it best, “As investor needs and preferences change, brokerages are adapting. Our 2019 online broker ranking recognizes that no brokerage can hit the bull’s-eye for every type of client -- and that the firm with the broadest appeal may not meet every investor’s specific needs. But ultimately, we favored firms that could do the most for the broadest range of investors.”
Firstrade is the only online broker offers commission-free trading for stocks, ETFs, options, and mutual funds. We invite you to further explore the many offerings that Firstrade provides, including retirement products like IRA’s, and Dividend Reinvestment Program (DRIP). Our powerful new mobile apps for Android and iOS devices free you from your desktop and make trading anywhere, any time.
We’re excited to share this news with you. At Firstrade, our first priority is to our customers. We will continue to provide you with the best trading tools and great customer support.