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I'm aware, such a stance is definitely on the very opposite end of the simplicity of a total market fund. Even choosing some sector funds is difficult. REITs fo
by pktgen 12y ago
I'm aware, such a stance is definitely on the very opposite end of the simplicity of a total market fund. Even choosing some sector funds is difficult. REITs for example would seem to be an easy one in my opinion (I see nothing wrong with renting real property for money), but the Vanguard fund VNQ still manages to own at least one company I refuse to own, Corrections Corporation of America, so I won't own that fund.
(Another term for this is "socially responsible investing" and there are indexes, and associated high-fee funds, that claim to seek it. However, I feel this is a very personal issue; I wouldn't use such an index because someone's definition of socially responsible/non-evil may be very different from mine. My opinion is such indexes/funds are just gimmicks with high expense ratios.)
And even if such an approach will most likely lead to lower returns (for example, due to higher fees in paying commissions, though that can be reduced or eliminated by smartly taking advantage of brokerage promos), I'm fine with that. I'll take my $1.00 earned from what I consider to be ethical means vs. $10.00 earned from what I consider to be unethical means.