Good Returns for Socially Responsible Investing

We’ve heard a lot about socially responsible investing (and its cousin, ESG investing) in recent years, as more of the public expresses interest in investing in companies that not only bring financial returns, but also align with their values. 

The big question has been: Will socially responsible investing generate the same returns as a traditional investment portfolio? It’s hard to quantify, but a new report states that socially responsible portfolios are outperforming their standard counterparts offered by several digital advisers, at least when it comes to robo adviser offerings. 

SRI portfolios offered by Wealthsimple and Morgan Stanley's digital adviser, Access Investing, performed exceptionally well. They beat their respective standard offerings by more than 2% in the trailing one-year period, InvestmentNews reports. 

It’s only one study, but it bodes well for the investment potential of SRI offerings.