This Socially Responsible Mutual Fund Offers Low Fees, Low Minimums, Big Returns
A young fund that practices socially responsible investing climbs the one-year chart.
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Newsletter sign up Newsletter

When an unfamiliar name pops up as a top performer, we’ll often take a closer look. It turns out that the fund in question, Aspiration Redwood (symbol REDWX (opens in new tab)), features a couple of investor-friendly benefits. Despite a tiny asset base of $16 million, the fund’s annual expense ratio is just 0.50%. And it requires just $100 to start.
Aspiration CEO Andrei Cherny says his firm is seeking to bring socially responsible investing to a wider audience. This power-to-the-people attitude explains the bite-size minimum, but what about the low fees? The fund’s costs are substantially greater than 0.50%, but for now Aspiration is capping the fees it charges shareholders at that level.
Bruno Bertocci and Thomas Digenan, of UBS Asset Management, run Redwood. To be considered, a firm must score high marks among its peers for its environmental, social and governance practices (one thing the fund looks for is diverse leadership). For the most part, the fund won’t invest in companies involved in fossil fuels, nor those in other blemished sectors, such as tobacco, alcohol and firearms. Beyond that, the managers seek firms with competitive advantages, talented executives and cheap share prices. The fund held 26 stocks at last word, with consumer-goods firm Newell Brands, drugmaker Eli Lilly and insurer Allstate holding the top slots.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
-
In Retirement Planning, What’s Your Retirement Personality?
There are many ways to think about retirement planning, and your personality can influence yours. If your personality and plan match, you have a greater chance of retirement success.
By Samuel V. Gaeta, CFP® • Published
-
Inflation’s Toll: Cuts to Retirement Savings and Health Care
Many consumers struggling to make ends meet amid inflation are reducing retirement planning and health care, both of which can have disastrous results later in life. A professional could help.
By Kristi Martin Rodriguez • Published
-
The 12 Best Bear Market ETFs to Buy Now
ETFs Investors who are fearful about the more uncertainty in the new year can find plenty of protection among these bear market ETFs.
By Kyle Woodley • Published
-
Don't Give Up on the Eurozone
mutual funds As Europe’s economy (and stock markets) wobble, Janus Henderson European Focus Fund (HFETX) keeps its footing with a focus on large Europe-based multinationals.
By Rivan V. Stinson • Published
-
5 Fantastic Actively Managed Fidelity Funds to Buy
mutual funds In a stock picker's market, it's sometimes best to leave the driving to the pros. These Fidelity funds provide investors solid active management at low costs.
By Kent Thune • Published
-
10 Bond Funds to Buy Now
Investing for Income Bond funds have seen sizable losses so far this year, but yields are now rising to attractive levels for income-starved investors.
By Adam Shell • Published
-
Vanguard Global ESG Select Stock Profits from ESG Leaders
mutual funds Vanguard Global ESG Select Stock (VEIGX) favors firms with high standards for their businesses.
By Rivan V. Stinson • Published
-
Kip ETF 20: What's In, What's Out and Why
Kip ETF 20 The broad market has taken a major hit so far in 2022, sparking some tactical changes to Kiplinger's lineup of the best low-cost ETFs.
By Nellie S. Huang • Published
-
ETFs Are Now Mainstream. Here's Why They're So Appealing.
Investing for Income ETFs offer investors broad diversification to their portfolios and at low costs to boot.
By Nellie S. Huang • Published
-
Do You Have Gun Stocks in Your Funds?
ESG Investors looking to make changes amid gun violence can easily divest from gun stocks ... though it's trickier if they own them through funds.
By Ellen Kennedy • Published