Values-Aligned Investing
Values-aligned, with costs and taxes in mind:
A lot of people want their investments to reflect their values, not just their risk tolerance and time horizon.
Values-aligned investing is simply a way to bring personal priorities into an investment plan. For some clients, that means avoiding certain industries. For others, it means leaning toward companies with stronger environmental, social, or governance (ESG) characteristics, or using socially responsible investing (SRI) screens. There’s no single definition of ESG or SRI that fits everyone, so we start by getting clear on what matters to you.
What This Can Look Like
Depending on your preferences, we can help you:
- Avoid specific exposures such as fossil fuels, tobacco, weapons, private prisons, or any other categories you choose.
- Tilt toward certain themes such as clean energy, water, or community development.
- Use ESG/SRI screened funds and ETFs when they fit your plan and priorities.
- Understand the trade-offs including cost, diversification, and tracking error, so you know what you’re choosing and why.
When requested, we can use both negative and positive screening, discuss community development investing options, and share practical resources for proxy voting and shareholder stewardship. What’s feasible depends on the accounts you use and the investments you hold, but we’ll walk through the options and the trade-offs.
If you already have a screening policy from an employer, foundation, or a community group, we can use that as a starting point.
Our Approach
We treat values-aligned investing as part of good planning, not a separate product.
- Clarify your priorities. We’ll talk through what you do and don’t want your money supporting. If it’s helpful, we’ll turn that into a short set of screening criteria that’s easy to follow.
- Keep the investment plan grounded: We start with the fundamentals: appropriate risk, broad diversification, reasonable costs, and a long-term strategy. Screens come after the foundation, not before it.
- Implement in a practical way: We’ll look for sensible ways to apply your preferences using the options available in your accounts, often through diversified funds and ETFs. If there are meaningful trade-offs, like higher costs or a narrower opportunity set, we’ll spell them out clearly.
- Document it and revisit when needed: Preferences change and fund lineups change. When you request an update, we can refresh your criteria and adjust recommendations.
A Few Things to Know Up Front
Values-aligned investing isn’t a guarantee of higher returns or better outcomes. It’s a way to align a portfolio with your preferences while still taking risk and return seriously.
Also, “ESG” labels can vary widely. We don’t rely on labels alone. When we consider ESG or SRI strategies, we focus on what the fund actually holds and how the screening is done.
Staying Current
ESG and SRI change quickly. We stay up to date on new fund options, screening methods, and industry developments, and we’ll flag meaningful updates when they affect your plan or the tools available to implement your preferences.
Ongoing Education
If values-aligned investing is part of your plan, we can revisit your screens and update recommendations when you schedule a follow-up or request an update. Fund lineups and holdings change, and we’ll help you adjust as needed.
Proxy Voting and Shareholder Action
Some clients also care about how companies are influenced after they invest. When requested, we can discuss practical ways to express preferences through proxy voting resources and fund stewardship practices. The level of control depends on the investments you hold.
Is Values-Aligned Investing a Fit?
It can be a good fit if you want your plan to reflect your priorities and you’re comfortable with the fact that screens can create trade-offs. If you’re curious, we can talk through what you’re trying to accomplish and what’s feasible in your specific accounts.
