Why invest in ModernAdvisor Socially Responsible Portfolios

earn solid investment returns
Numerous studies* have shown that Socially Responsible Investments perform just as well, if not better, than traditional investments. The reason? Companies that adhere to ESG principles are typically better governed, have a more engaged workforce, and have lower legal risk.

help protect the environment for generations to come
ModernAdvisor’s Socially Responsible Portfolios invest in funds that have an Environmental, Social, and Governance (ESG) mandate. While ESG investments are not the same as Fossil Fuel Free or Green funds, they exclude the worst environmental offenders and have a much better environmental track record compared to a typical investment fund.

invest with a clear conscience
ModernAdvisor Socially Responsible Portfolios exclude investments in questionable businesses such as controversial weapons manufacturers and companies involved in the production and distribution of tobacco products.
The Funds We Invest in
xen | ishares jantzi social index etf
This ETF invests in Canadian companies. Companies are screened on environmental, social and governance factors on a scale from 1 to 5, where 5 indicates significant controversies. Companies with 1 or more scores of 4 or 5 are ineligible. Companies involved in military contracting, nuclear power or tobacco are also ineligible.
dsi | ishares msci kld 400 social etf
This ETF invests in US stocks and excludes companies involved in nuclear power, tobacco, alcohol, gambling, military weapons, civilian firearms, GMOs and adult entertainment. The remaining companies are screened on environmental, social and governance factors and must maintain a minimum B rating.
esgd | ishares msci eafe esg optimized etf
This ETF invests in companies in Europe, Australasia, and the Far East. Companies involved in tobacco or controversial weapons are excluded. The remaining companies are screened on enviornmental, social, and governance factors and must maintain a minimum B rating.
esge | ishares msci em esg optimized etf
This ETF invests in companies in Emerging Markets such as China and Brazil. Companies involved in tobacco or controversial weapons are excluded. The remaining companies are screened on environmental, social, and governance factors and must maintain a minimum B rating.
clf | ishares 1-5 year laddered government bond index etf
This ETF invests only in Canadian government bonds. By avoiding corporate bonds, it will not have any exposure to bonds from companies that may have a questionable environmental, social, or governance record.
zef | bmo emerging markets bond hedged to cad index etf
This ETF invests in governments bonds from countries like South Korea, Russia, Mexico and Indonesia. This is the only emerging market bond ETF available in Canada.
reet | ishares global reit etf
This ETF invests in Real Estate Investment Trusts and has received a ‘High’ rating from Morningstar for sustainability.
Frequently Asked Questions
It remains an open question whether socially responsible portfolios can reliably match or beat the financial performance of traditional portfolios (source, source), and while it is important to disclose the latest research to investors, there are other important factors when making the case for socially responsible investing.
Socially responsible investing is a way for individuals to act on their values and influence corporate practice and public policy. This research paper from the Sustainable Investment Forum (US-SIF) describes many of the successes of SRI over the past twenty-five years. The Executive Summary starting on page 4 provides highlights which could be used to draft messaging around this aspect of SRI.
Another argument in favour of socially responsible investing is as a risk mitigation strategy, particularly in relation to climate change. Investment is a bet on future performance. Estimates of future performance must take into account the context in which all businesses and governments will perform. It feels safe to assert that business as usual is not a safe bet. The US-SIF report linked above touches on this briefly in a discussion of fiduciary responsibility.