Updated Guide to Help Retail Investors Get Started in Sustainable Investing Released by the US SIF Foundation
This brief paper is a concise resource to introduce retail investors to sustainable investing. It covers investment options such as mutual funds and ETFs, direct ownership of stocks, and community-oriented fixed income products and cash.WASHINGTON, D.C., August 11, 2021 – In response to rapidly growing demand for sustainable investing, the US SIF Foundation has released an updated version of “Getting Started in Sustainable Investing: A Guide for Individual Investors.”
This guide is a concise resource to introduce retail investors to sustainable investing. It covers investment options such as mutual funds and ETFs, direct ownership of stocks, and community-oriented fixed income products and cash. It also provides information on how to get professional help from financial advisors or through robo-advisors that offer sustainable investment options.
Sustainable investing has grown rapidly in the United States and globally in recent years. Assets under professional management (AUM) that take environmental, social and governance (ESG) factors into account in the United States increased by 42 percent from $12.0 trillion in 2018 to $17.1 trillion in 2020. That equals one in every three dollars of total AUM. Institutional investors such as pension funds, insurance companies and educational institutions account for most of this activity and have ready access to sustainable investing professional expertise, networks and associations.
However, the ESG-related assets managed on behalf of individual investors are growing, too. Between 2018 and 2020, individual investor ESG assets under management increased by more than 50 percent from $3.0 trillion to $4.6 trillion.
“Impacts of the COVID-19 pandemic, climate change, rising economic inequality and the growing movement for racial justice have accelerated consumer interest in making positive social and environmental impacts through their investments,” said Lisa Woll, CEO of the US SIF Foundation. “As a result, we felt that this year was a good time to update this guide.”
To access a free copy of the report, click here.
About US SIF and the US SIF Foundation
US SIF: The Forum for Sustainable and Responsible Investment is the leading voice advancing sustainable and impact investing across all asset classes. Its mission is to rapidly shift investment practices toward sustainability, focusing on long-term investment and the generation of positive social and environmental impacts. US SIF members include investment management and advisory firms, mutual fund companies, asset owners, research firms, financial planners and advisors, community investing organizations and non-profit associations.
US SIF is supported in its work by the US SIF Foundation, a 501(C)(3) organization that undertakes educational and research activities to advance the mission of US SIF.
Learn more at ussif.org.