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Sustainability Matters

How Can Climate-Aware Funds Fit Into Your Portfolio?

Our analysis shows how these funds stack up on specific climate-related metrics.

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Just as governments around the world have spent the past year racing to get the coronavirus pandemic under control, we should be racing to contend with a similarly harmful global event: the threat of climate change. To be sure, a growing number of entities are doing their part. Regulators are ratcheting up efforts to combat climate change, and the investment community is offering more disclosure.

How can individual investors play a part in this effort? To start, they can familiarize themselves with climate-aware funds and fit them into their portfolios where appropriate. The funds we consider "climate-aware" represent a broad range of approaches to meeting various investor needs and preferences, such as the divestment from fossil fuels or participation in carbon solutions.

Elizabeth Stuart does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.