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Finance allah shmoop what is an ethical fund an ethical

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fund the political weapon of unsophisticated finance people throwing straw

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at brick houses everywhere Well unethical fund is one that

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has no ah sin or no investments in what they

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perceive as bad things like you know porn google images

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and snapchat facebook tobacco philip morris altria arguably the best

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investments over the last century Guns and boeing rockwell bomb

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gambling a vegas casino caesar's sands yeah that's not really

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oil chevron shell bp hollywood it is neat bike on

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the other and then there's technology which delivers all of

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the above and let's not forget about telecommunications which lets

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people converse Teo then deliver all of the above way

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Going too far here Yeah and that's the problem with

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quote ethical funds unquote healthy ethics are in the eyes

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of the beholder Go to a church service in the

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deep south and it's likely the congregation will give you

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a completely different quote It's ok to invest in unquote

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portfolio then what A bunch of hippies in marin county

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california So who's to say what is ethical and what

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is not Well actually it's the gang marketing the mutual

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fund which named itself to be and ethical fund Who

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determines what investors would feel good about investing in and

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hey that's fine Someday it's him up We want to

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start a fund investing on lian companies who are funny

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like intentionally funny not like you know g and those

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guys Well the problem is that for better or worse

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a large portion of the name's actively omitted from the

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list of buyable stocks in and ethical fund are often

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actually really good Businesses like oil and gas for example

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has been a stalwart for a century in the u

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s so has tobacco And oh by the way most

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technology companies early histories were driven by profits in and

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around porn So there is in essence a price that

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investors historically seemed to be paying for the privilege of

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being all judgy about what ethics are meaning that results

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in ethical funds tend to lag their competitors by a

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few percent each year and over a couple of decades

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While that means that ethical funds end up being worth

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a lot less than unfiltered funds their funds who just

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are out there trying to make money for shareholders and

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then the big question gets asked from the ethically rich

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and financially poor from the poor house i shouldn't The

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best ethics just revolve around legally producing the best financial

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return for investors Know what a concept investing in order 00:02:52.165 --> [endTime] to make more money Who'd a thought

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