Ethical investments “not always rubbish”
Ethical investments aren’t always rubbish, investment advice site The Motley Fool claimed this week.
Fool.co.uk journalist Harvey Jones made the claim following reports that ethical funds dropped by an average of 16.7% in the past year compared to an average 12.4% fall on non-ethical funds.
However, looking back to figures from 2007, Jones noticed that ethical funds outperformed their non-ethical counterparts by 29%.
“[Ethical funds] aren’t always rubbish,” Jones said.
“Maybe we shouldn’t be too hard on them.”
However, he explains that investors seeking a good return should avoid ethical funds, at least for now.
“The latest performance figures are so bad, I wouldn’t take the chance that the next several years will be one of [ethical funds'] better periods,” he said.
“Ethical funds often let their well-meaning investors down, and I can’t see anything particularly ethical about that.”