You can invest in reliable, profitable S&P 500 funds that don't include fossil fuel companies. And your earnings and fees will be about the same!
Compare the performance and fees of the Vanguard S&P 500 Value ETF (VOOV) to the SPDR S&P 500 Fossil Fuel Reserves Free ETF (NYSE Arca : SPYX).
They're neck and neck! They've both earned a bit more than 15% in the last year. And their expense ratios are close, 0.15% and 0.20%, respectively.
Why Divest From Fossil Fuels?
Did you know that 100 fossil fuel companies have produced 71% of all greenhouse gas emissions since 1988? That's both in their production and distribution processes, and in the downstream use of their products. It's clear that fossil fuels are the 800 pound gorilla of Climate Change.
Divesting from those companies is one significant way to shrink that beast. It applies both political and financial pressure for fossil fuel companies to die off or to change to another business model.
With a fossil fuel-free S&P 500, you can do your bit while investing wisely for your future.
Does Divestment Really Work to Produce Change?
That's a good question! And it's a controversial one. Divestment has worked at times. It helped bring down Apartheid in South Africa.
Here's two webpages that discuss pro's and con's of fossil fuel divestment:
Take a look to decide if divestment is something you want to be part of.
Why Invest in an S&P 500 Index Fund?
If you're a regular person, a small-time investor, you've probably heard Warren Buffet's advice: Just invest in an S&P 500 index fund with low costs, such as one by Vanguard.
Research shows that most investors (even professionals) can't pick stocks better than random chance. And even if you're lucky or good, active investing eats up a lot of profit in fees.
