Green With Envy (Investing in SRI Funds)

Energy prices have been at record highs in recent months. The price per barrel of crude oil is around $66, which is near historical absolute highs (prices not adjusted for inflation though). So, with such high energy prices, everyone, even (surprisingly) President Bush, is suggesting we look at alternative energy sources. Socially responsible funds might fill the bill here- there are a few that I'm looking at.

At the top of the list is the Winslow Green Growth Fund (WGGFX) which invests in environmentally responsible, environmentally benign, or best-of-the batch (least irresponsible) companies. It is not a pure energy focused fund, but diversifies into various industries, including alternative energy, software, health care, and industrial materials among others. It currently has a 5 star Morningstar rating. It's a bit risky though, with a high beta of 1.81, and it is weighted more in small-caps. It's a no load fund with a 1.45% expense ratio (higher than I'd like, but within the range that I would consider).

Another SRI fund is the New Alternatives Fund (NALFX) which is more focused on the energy and industrial materials sectors than WGGFX - more concentrated, if that's what you're looking for. This fund has a 1.32% expense ratio, however, has a HUMONGOUS 4.75% front load- rather ironic that a socially responsible fund is gouging its investors charging such an outrageously high fee- Shame on them!

See also:
* Top Morningstar SRI Funds
* In the year of the oil boom...


(disclaimer, at the time of this writing, I currently do not own, but by the time you read this I may buy or have already bought and have sold funds mentioned in this article).