Green funds are mutual funds or other types of investment vehicles that promote socially and environmentally conscious policies and business practices.
Green funds can invest in green transportation, alternative energy and sustainable lifestyle companies.
Green investing began in earnest in the 1990s after environmental disasters such as the Exxon Valdez oil spill attracted worldwide attention.
$50 billion was invested in green funds in 2020, more than double the previous year’s inflow.
There is some evidence that green funds can match the returns of traditional funds, but they are not conclusive.