Investors' Chronicle How to build a portfolio you can be proud of
Dec 17, 2025
Explore the intriguing world of ethical investing, where aligning your finances with your values can be complex. Discover the significance of ESG labels and the real meaning behind 'ethical' investing. Learn about the trade-offs between sustainability and financial returns, particularly for women investors. Understand how market giants influence sustainability assessments and the importance of transparency. Dive into different investment strategies, from impact funds to ESG screenings, and weigh the pros and cons of sustainable investing.
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Industry Definitions Differ From Personal Values
- The investment industry defines "ethical" and "sustainable" differently than individual investors often do.
- Don't assume fund labels match your personal values when choosing investments.
Big Tech Drives Market Returns
- A handful of giant tech firms dominate global indices and therefore drive market returns.
- Excluding these companies from ethical funds can materially reduce short-term performance.
Weigh Returns Against Ethical Exclusions
- Recognize there can be a performance trade-off when applying strict ethical exclusions.
- Consider your time horizon before prioritising ethical criteria over returns.