Ethical investing suffers from a really rough dilemma: it either doesn't work or underperforms the market. If ethical investing works, then it does so by makin

Ethical investing suffers from a really rough dilemma: it either doesn't work or underperforms the market. If ethical investing works, then it does so by making capital more expensive for companies you do not invest in. And the market for capital is two-sided, so the people who do invest in it get above-market returns at your expense. If you get market-rate returns, on the other hand, you haven't made capital any more expensive for the unethical companies.