Everything You Need to Know About Ethical Investing

Developing a rewarding investment strategy is challenging on the best of days, and factoring in ethical investing rules can make it even more difficult to turn a profit. An ethical investing strategy involves choosing investments while factoring in a personal moral code. The result is putting money into businesses and industries that positively influence ideas and purposes that are important to you.

The definition of an ethical organization varies by person, so a strategy that works for one person might not be agreeable to another. Therefore, you’ll have to develop a personalized investment plan to ensure that the companies you’re supporting align with your worldview. 

This guide will walk you through the process of finding ethical investments and earning a return without compromising your beliefs.

Aspects to Consider When Investing

Your ethical investment code depends on what matters to you. While most ethical companies are attempting to make a difference in the world, how they go about it varies. Some ideas to keep in mind when choosing investments include:


Investing in sustainable companies means finding organizations that focus on renewable resources. These businesses might also reuse or recycle products to lessen the burden on the planet’s natural resources. Sustainable companies are growing in volume as more people become aware of their benefits. 

Social Responsibility

Organizations that focus on social responsibility include fair-trade companies that pay their employees a livable wage and minority- or female-owned businesses. When getting involved with socially responsible investing, or SRI, you might focus on a social issue that’s important to you and invest in a company that supports those beliefs.

Green Investing

In many ways, green investing is similar to sustainable investing because it focuses on environmental concerns. Examples of green businesses include organizations that create energy-efficient products, clean fuels, and low-carbon transportation infrastructure. 


When selecting companies to invest in, some people will look at their management and whether it aligns with their morals. Aspects of corporate governance to consider include whether executives make a reasonable wage rather than excessive pay, the diversity on the company’s board of directors, and if the organization is responsive to shareholders.

All of these ethical investing considerations fall into the environmental, social, and governance (ESG) investment category. ESG investing is becoming more common as investors not only appreciate having a more ethical portfolio, but are also finding that some of these companies offer significant returns and less risk.

person in front of windmill

5 Tips for Creating an Ethical Investing Portfolio

There’s a lot to navigate when building an ethical investing portfolio. Breaking the process down into a few steps can make it more manageable and, hopefully, enable you to select investments that do well while also doing good.

1. Figure Out What’s Ethical to You

You’ll want to start by determining what type of company you find reputable. This decision varies by person, so begin by developing a list of ethical issues you’re looking to support, as well as some deal-breakers. Knowing what you’re looking for allows you to quickly eliminate potential investments that don’t meet your moral requirements.

2. Consider Whether You Should Build Your Own Portfolio

Next is figuring out if you want to manage your portfolio yourself. The advantage of doing so is that you can select the exact investments you want to make, with the drawback being the time commitment. It’ll also take some time to learn how the market works if you’ve never invested before, and you might find that you don’t get the returns that a professional can deliver. 

3. Look at Managed Portfolios

The other option is to go with a managed portfolio, which means an investment manager takes care of the entire process for you. This option is great if you don’t have the time or know-how to deal with your own investments but want to maintain some control over where your money goes. Robo-advisors are becoming increasingly helpful too, but keep in mind that they won’t allow you to add specific investments to your portfolio.

4. Research Individual Stocks

For those who have decided to build an ethical portfolio themselves, the next step is researching companies that meet their moral investing goals. Start by searching for traded companies and then do some in-depth research on the organization to ensure it matches your morals. You’ll want a diversified portfolio that covers multiple industries, so keep digging until you’re satisfied with your volume.

5. Explore Ethical Mutual Funds

An easier way to invest in ethical companies is through mutual funds. There is an increasing number of mutual funds that focus on ethical investing, with the idea being that the fund will invest in multiple companies that meet specific standards. Much like using a robo-advisor, however, you won’t have any input on the stocks the mutual fund purchases with your money. 

How much time you can spend researching these companies, and the market in general, will likely dictate the direction you take. The good news is that ethical investing is a growing trend, so you’ll have lots of company as you make this transition.

Consult With an Ethical-Investing Expert

The experts at Bogart Wealth eliminate many of the challenges of ethical investing by enabling you to provide specific investment parameters while having a stock market expert handle the hard work and research for you. The result is a portfolio that can help you meet your unique financial goals without sacrificing your morals.

Contact Bogart Wealth to speak with an expert about your ethical investing concerns or learn more about our investment and wealth management services.

Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Bogart Wealth, LLC [“Bogart Wealth”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level (s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Bogart Wealth. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Bogart Wealth is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Bogart Wealth’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at bogartwealth.com

Please Note: Bogart Wealth does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Bogart Wealth’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.
Please Remember: If you are a Bogart Wealth client, please contact Bogart Wealth, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services.  Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently.
Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.

latest posts

Stay up to date with our most recent news and updates!

Work with a financial advisor who puts your needs first.

Want to talk first? Call us at
(866) 237-0121

  • This field is for validation purposes and should be left unchanged.

You are now leaving the Bogart Wealth, LLC / Bogart Wealth™ (“Bogart”), website and entering a third party website that we do not control.

Bogart is not responsible for third party websites hyper linked our website, and does not guarantee or necessarily endorse any content, recommendations, products or services offered on third party sites.

In addition, third party websites may have different privacy and security policies than Bogart. Therefore, you should review the applicable privacy and security policies of any third party website before you provide any information.