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