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Immanuel Santosh's avatar

I see this with Indian investors too — many want ethical options but default to real estate or gold because they don't know Sharia-compliant funds like HIWS exist here. The trade-off in returns is real, but so is the peace of mind. It's about aligning your portfolio with your values, not chasing perfection.

Mia McGrath | Frugal Chic®'s avatar

Yes, agreed. There's sadly always a a trade-off - I really respect and admire those who pursue ethical investing options.

Zaynab Alam's avatar

Though the research is limited it’s cool to see that there’s some research on impact investing influencing company decisions.

I don’t think there’s a one size fits all except to invest in an ETF or stock that aligns with your values and trust it will work out with whatever lane you choose.

emma's avatar

Thanks for writing about this! I do think it's a relevant topic and wish more people spoke up / considered how investing can be a bit more "ethical". I don't think anyone should aim for perfection but I think it's possible to choose more ethical funds and at least know your money is not going to certain companies :)

Mia McGrath | Frugal Chic®'s avatar

Thanks Emma, it's good for people to know the option is there - even if it's not perfect

Gloria Figaroa's avatar

Hey Mia, thank you for creating awareness on this topic!! The fact you've addressed this on numerous occasions shows you care and have considered it. A suggestion: I would have loved a few specific examples of broad funds - but I totally understand if that's not where you want to take this. E.g., I invest in an ESG fund, which under the above categories falls more into the ethical investing category. For comparison, it generated a 9.91% annualized return over the past five year compared to an 11.25% annualized return over the past five years for the All-World variant. It's a smaller return yes, but as someone working in sustainability, an ESG fund aligns with my personal values. Loved this article, as always!

Mia McGrath | Frugal Chic®'s avatar

Love this Gloria!! Although I am not personally taking this approach I am glad it resonates with anyone who is curious about it/already investing ethically. I honestly applaud anyone that does this. Thank you for the feedback. I will be sure to add this. x

Productivity With Care's avatar

Super interesting learning more about ethical investing. I am aware of impact investing, but never knew that there was a category specifically for in a way choosing investments based on our values. Thank you for sharing the evidence for and against it as well! Great article.

Tamakia Moore's avatar

Mia , thank you for writing this post . I was having a conversation about ethical investing and didn’t know where to start . This gave me practical and helpful application to get started ! This was right on time .

Mia McGrath | Frugal Chic®'s avatar

Yay thanks for the feedback!