Low Fees, Big Return From Aspiration Redwood

(Image credit: ShaheenK)

published 2 May 2017

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), 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.

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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.

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Ryan joined Kiplinger in the fall of 2013. He wrote and fact-checked stories that appeared in Kiplinger's Personal Finance magazine and on Kiplinger.com. He previously interned for the CBS Evening News investigative team and worked as a copy editor and features columnist at the GW Hatchet. He holds a BA in English and creative writing from George Washington University.