Build Wealth and Save the World Through Socially Responsible ETFs

Ethically-minded investors have more options as ETFs cross over into the wealth-building, world improving categories. During the past few years, around a dozen ETFs with a socially responsible focus have debuted in the market, reports G. Jeffery MacDonald of The Christian Science Monitor. For instance, two launched in June: PowerShares Global Clean Energy Portfolio (PBD) and the Claymore/KLD Sudan Free Large Cap Core (KSF).

MacDonald notes that short term traders don't usually invest in socially responsible ETFs and hedge fund traders aren't going in and out of these funds. These socially responsible ETFs offer investors the ability to take a diversified position without the need for single stock picking.

On the whole, advisers are using ETFs in a range of ways to help socially conscious investors address unique circumstances and achieve highly specific goals. And investors can expect options in this domain to keep expanding in coming years.

The way ETFs are structured allows them to give more specialized offerings, especially in areas where average investors have not had the opportunity to invest before, such as commodities, currencies and precious metals. They are popular for their transparency, liquidity, and tax efficiency. Because of this, providers are offering more for investors

SA Editors: Additional commentary is available in this updated list of Socially Responsible ETFs.

PBD vs. KSF 2 month chart: