3 Tips to Align Your Portfolio with Your Values
Your principles are important to you, so important that you want to make them a key player in your investment decisions. That's admirable, but just like with any other investment decision, it's important to be smart about how you go about it.
Building a portfolio can often feel like an extremely personal endeavor. Investors may meticulously examine a stock’s or fund’s past performance, analyze sectors as a whole, research how management runs a company and more. But when it comes to portfolio allocation, the desire to align personal values with portfolio decisions is trending among investors of all ages.
More and more, investors are becoming interested in investing according to their beliefs. According to Natixis Investment Managers, “three-quarters of investors globally say it is important that they invest in companies that reflect their personal values.” And to take it a step further, it is of almost equal importance to all generations when making investment decisions that their investments are doing social good — silent generation: 67%, baby boomers: 68%, Generation X: 71% and millennials: 73%.
So, if you are an investor who wants to invest in line with your faith and/or values, how can you get started? Below are three tips to align your portfolio with what matters most to you.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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.
1. Define what matters to you.
At GuideStone® we focus on faith-based investing, so we screen out certain companies that do not align with our values, such as abortion, pornography, gambling, alcohol and tobacco. However, it is important to note that faith-based investing in practice is unique to each person, reflecting each individual’s passions, values and principles while taking the form of ESG (environmental, social and governance) investing, socially responsible investing, values-based investing, impact investing and so on. Define what matters to you and what you want your investments to align with (or avoid).
2. Consider mutual funds.
It can be daunting and research-intensive to create your own portfolio and investigate individual equities to make sure companies align with your values. However, there are mutual fund families that screen based on philosophies, such as faith-based or values-based investing. Mutual funds are a great solution, because they provide investors with a basket of securities that are fully vetted and not only align with a specific philosophy but are also overseen by financial professionals who monitor risk and performance on a daily basis.
3. Talk to your adviser.
If you want to incorporate values into your portfolio, be transparent with your adviser so he or she can act on your behalf to research stocks or funds that align with your preferences. While studies show there is interest in faith-based investing, we do see a disconnect between wanting to invest in this way and actually getting the ball rolling. Unfortunately, many investors are not even aware of their faith-based investing options because advisers are not broaching the subject with them. Make it clear what your values are and how you want them to align with your investment options.
As faith-based investing continues to trend upward, we believe it will become more common to discuss aligning values with investments. Until then, we recommend placing a figurative stake in the ground with your adviser by conveying that this concept should be considered when determining your long-term investment allocations.
Your values likely dictate many of your day-to-day decisions, so why should your investing habits be any different? Take control of your portfolio and understand that through certain mutual funds, you can align your wealth with your values and still maintain meaningful portfolio returns.
For more information on GuideStone Funds®, visit GuideStoneFunds.com.
-
Dow, S&P 500 Rise to New Closing Highs: Stock Market TodayWill President Donald Trump match his Monroe Doctrine gambit with a new Marshall Plan for Venezuela?
-
States That Tax Social Security Benefits in 2026Retirement Tax Not all retirees who live in states that tax Social Security benefits have to pay state income taxes. Will your benefits be taxed?
-
QUIZ: What Type Of Retirement Spender Are You?Quiz What is your retirement spending style? Find out with this quick quiz.
-
This Is How Early Retirement Losses Can Dump You Into Financial Quicksand (Plus, Tips to Stay on Solid Ground)Sequence of returns — experiencing losses early on — can quickly deplete your savings, highlighting the need for strategies that prioritize income stability.
-
How an Elder Law Attorney Can Help Protect Your Aging Parents From Financial MistakesIf you are worried about older family members or friends whose financial judgment is raising red flags, help is out there — from an elder law attorney.
-
Q4 2025 Post-Mortem From an Investment Adviser: A Year of Resilience as Gold Shines and the U.S. Dollar DivesFinancial pro Prem Patel shares his take on how markets performed in the fourth quarter of 2025, with an eye toward what investors should keep in mind for 2026.
-
Is Your Emergency Fund Running Low? Here's How to Bulk It Back UpIf you're struggling right now, you're not alone. Here's how you can identify financial issues, implement a budget and prioritize rebuilding your emergency fund.
-
An Expert Guide to How All-Assets Planning Offers a Better RetirementAn "all-asset" strategy would integrate housing wealth and annuities with traditional investments to generate more income and liquid savings for retirees.
-
7 Tax Blunders to Avoid in Your First Year of Retirement, From a Seasoned Financial PlannerA business-as-usual approach to taxes in the first year of retirement can lead to silly trip-ups that erode your nest egg. Here are seven common goofs to avoid.
-
How to Plan for Social Security in 2026's Changing Landscape, From a Financial ProfessionalNot understanding how the upcoming changes in 2026 might affect you could put your financial security in retirement at risk. This is what you need to know.
-
6 Overlooked Areas That Can Make or Break Your Retirement, From a Retirement AdviserIf you're heading into retirement with scattered and uncertain plans, distilling them into these six areas can ensure you thrive in later life.
