Morningstar's Highest-Rated Green Funds
The green movement and the stock market – good bedfellows?
Green funds didn’t used to make much money, but as public and private investments soared, their assets grew – nearly 640 percent since 2001. And with the Obama Administration shoveling billions toward energy efficient projects, there is a belief out there that this could be the time for green funds to really make some green of their own.
But our Money Desk isn’t so sure. Tom Orecchio, principal at Modera Wealth Management and former chairman of the Board of Directors of NAPFA, says green funds are a good way to align your values with your portfolio – similarly to the socially responsible investing craze of the ‘90s – but you should be willing to give back some return.
Doug Lockwood, principal at Harbor Lights Financial Group, puts it more bluntly: he just doesn’t know if green works as an investment strategy. The performance data of these funds makes him cautious; instead, he offers, why not invest in great companies that are going green?
Morningstar’s Highest-Rated Green Funds
Alger Green A (SPEGX)
Morningstar Rating: ****
Invests in growth companies that do business in an environmentally sustainable manger
5-Year Annualized Returns: -0.60%
Net Expense Ratio: 1.25
Portfolio 21 (PORTX)
Morningstar Rating: ****
Invests in environmentally forward-thinking companies
5-Year Annualized Returns: -0.10%
Net Expense Ratio: 1.49
New Alternatives Fund (NALFX)
Morningstar Rating: ***
Invests in alternative energy and other environmentally firiedly companies
5-Year Annualized Returns: 1.43%
Net Expense Ratio: 1.09