If you want to own investments that reflect your values, the Vanguard FTSE Social Index Fund is worth a look. This fund tracks the FTSE4Good US Select Index, and holds large- and mid-cap stocks that satisfy environmental, social, and corporate governance criteria.
As one of Vanguard’s premier ESG funds, VFTNX avoids stock in companies engaged in adult entertainment, alcohol, tobacco, cannabis, gambling, weapons and nuclear power, as well as companies that are involved with coal, oil or natural gas. It also excludes stock of companies that do not meet certain labor, human rights, diversity and environmental requirements.
The fund’s 13.15% average annual return is second best among Vanguard funds in our list over the past decade.