Several national investing concerns recently announced plans to create socially responsible mutual funds, including The Vanguard Group and TIAA-CREF. Fidelity Investments is developing an index fund pegged to the Calvert Social Index.
Over $1 trillion are invested in social funds in the U.S., although the funds vary widely in terms of their definition of socially responsible companies. TIAA-CREF is the object of a campaign to direct a percentage of their investment dollars toward positive investing, investing in leading companies in social and environmental considerations, rather than simply screening out companies with negative track records.
According to Emily Hall of Morningstar, Inc., the new funds promise the competition needed to bring fees down. The average social investing mutual fund charges fees about 15 percent higher than conventional funds.
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