Socially Responsible Investing
SRI is any general investing strategy that considers not only traditional measures of risk and return, but environmental, social, and corporate governance (ESG) factors as well.
The term socially responsible investing is often used interchangeably with terms such as ESG investing, socially conscious investing, or sustainable investing. For information on various SRI strategies, review our common questions.
SRI is a widely accepted investment approach that may allow investors to align their investments with their values without sacrificing performance.
How Schwab helps
- A wide range of low-cost SRI options
Choose from over 500 mutual funds, over 80 ETFs, and a wide range of separately managed accounts as of 5/31/2020.
- Easy to use tools
Easily find and compare socially responsible funds using our proprietary screening and comparison tools.
- Expert guidance
Get educational resources from Schwab experts to help you build your own portfolio.
Consider investing your conscience with the new Schwab Ariel ESG ETF.
The Schwab Ariel ESG ETF invests primarily in exchange-traded equity securities of U.S. companies that have been evaluated based on specific environmental, social, and governance (ESG) criteria. The Schwab Ariel ESG ETF may serve as a building block for those seeking investments that combine the potential benefits of an ESG focused investment strategy with long-term investing.
The Schwab Ariel ESG ETF is different from traditional ETFs.
Traditional ETFs tell the public what assets they hold each day. This fund will not. This may create additional risks for your investment. For example:
- You may have to pay more money to trade the fund's shares. This fund will provide less information to traders, who tend to charge more for trades when they have less information.
- The price you pay to buy fund shares on an exchange may not match the value of the fund's portfolio. The same is true when you sell shares. These price differences may be greater for this fund compared to other ETFs because it provides less information to traders.
- These additional risks may be even greater in bad or uncertain market conditions.
- The ETF will publish on its website each day a "Proxy Portfolio" designed to help trading in shares of the ETF. While the Proxy Portfolio includes some of the ETF's holdings, it is not the ETF's actual portfolio.
The differences between this fund and other ETFs may also have advantages. By keeping certain information about the fund secret, this fund may face less risk that other traders can predict or copy its investment strategy. This may improve the fund's performance. If other traders are able to copy or predict the fund's investment strategy, however, this may hurt the fund's performance.
For additional information regarding the unique attributes and risks of the fund, see Proxy Portfolio Risk, Premium/Discount Risk, Trading Halt Risk, Authorized Participant Concentration Risk, Tracking Error Risk, and Shares of the Fund May Trade at Prices Other Than NAV in the Principal Risks and Proxy Portfolio and Proxy Overlap sections of the prospectus and/or the Statement of Additional Information.
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- How has SRI evolved?
- How have SRI funds performed?
- How do SRI funds differ from non-SRI?
- Are there different SRI strategies?
- What are common SRI criteria used by investors?
- How can investors construct an SRI portfolio?
- What is Schwab's commitment to social responsibility?