You may have heard about “sustainable investing.”  But if you're not familiar with it, you may have some questions: What does it involve? Is it right for me? Can I follow a sustainable investing strategy and still get the portfolio performance I need to reach my goals?

Sustainable investing can be defined in different ways, with different terminologies. However, one way to look at a sustainable approach is by thinking of it as investing in a socially conscious way which may involve two broad categories: environmental, social and governance (ESG) investing and values-based investing.

As its name suggests, ESG investing incorporates a broad range of environmental, social and governance risks and opportunities, along with traditional financial measures, when making investment decisions. This approach may have a neutral impact on performance because it maintains a focus on managing risk, traditional fundamental analysis and diversification. Here's a quick look at the ESG elements:

    • Environmental – Companies  may work to reduce carbon emissions, invest in renewable energy, decrease pollution and conserve water resources.
    • Social – A business  may promote gender and pay equality within its workforce, and maintain positive labor relations and safe working conditions for employees.
    • Governance – Companies distinguished by good governance may institute strong ethics policies, provide transparent financial reporting and set policies to ensure it has an independent, objective board of directors.

You can pursue an ESG investing approach through individual stocks, mutual funds or exchange-traded funds (ETFs), which hold a variety of investments similar to mutual funds, but are generally passively managed – that is, they do little or no trading. As an ESG investor, you don't necessarily have to sacrifice performance because ESG investments generally fare about as well as the wider investment universe. Some investments may even gain from the ESG approach. For example, a company that invests in renewable energy may benefit from the move away from fossil fuel sources.

Now, let's move on to values-based investing. When you follow a values-based approach, you can focus on specific themes where you may choose to include or exclude certain types of investments that align with your personal values.

So, you could refrain from investing in segments of the market, such as tobacco or firearms, or in companies that engage in certain business practices, such as animal testing. On the other hand, you could actively seek out investments that align with your values. For instance, if you’re interested in climate change, you could invest in a mutual fund or ETF that contains companies in the solar or clean energy industries.

One potential limitation of values-based investing is that it may decrease the diversification of your portfolio and lead to materially lower returns due to narrowly focused investments, prioritization of non-financial goals and too many exclusions.

Ultimately, if you choose to include a sustainable investing approach, you will want – as you do in any investing scenario – to choose those investments that are suitable for your goals, risk tolerance and time horizon.

If sustainable investing interests you, give it some thought – you may find it rewarding to match your money with your beliefs.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor Mandy Calouro, Chelmsford, MA.
EdwardJones.com/Mandy-Colouro - Edward Jones, Member SIPC

Cybercrime is booming. In 2021, the FBI reported that cybercriminals scammed nearly $7 billion from Americans — a figure slightly higher than the gross domestic product (GDP) of Switzerland for that year, according to research organization World Economics. How can you protect yourself from cyberthieves? Here are some suggestions that can help:
 

• Watch out for “phishing” attempts. You may receive emails that appear to be from a legitimate firm, requesting information your financial institution would never request online — confirmation of an account number, password, Social Security number, credit card number and so on. These notes can look official, often incorporating a firm’s logo, so pay close attention to what’s being asked of you.
• Think twice before clicking or downloading. If you are suspicious about a communication, don’t click on a link or download an attachment — instead, go to your financial firm’s website or use their app to verify they sent the information or request.
• Become adept with passwords. Use a different password for each of your accounts and change your passwords regularly. Of course, maintaining multiple passwords can be confusing, so you might want to consider using password management software, which generates passwords, stores them in an encrypted database and locks them behind a master password — which is the only one you’ll need to remember.
• Use your own devices. Try to avoid using public computers or devices that aren’t yours to access your financial accounts. If you do use another computer, clear your browsing history after you log out of your account.
• Be cautious about using Wi-Fi when traveling. When you’re on the road, you may want to use public hotspots, such as wireless networks in airports and hotels. But many people don’t realize that these hotspots reduce their security settings to make access easier, which, in turn, makes it easier for cyberthieves to intercept your information. In fact, some hackers even build their own public hotspots to draw in internet-seekers in an effort to commit theft. So, if at all possible, wait until you can access a trusted, encrypted network before engaging in any communications or activity involving your financial accounts.
• Don’t give up control of your computer. Under no circumstances should you provide remote access to your computer to a stranger who contacts you, possibly with an offer to help “disinfect” your computer. If you do think your device has an issue with malicious software, contact a legitimate technician for assistance.
• Know whom you’re calling for help. If you need assistance from, say, a customer service area of a financial institution, make sure you know the phone number is accurate and legitimate — possibly one from a billing or confirmation statement. Some people have been scammed by Googling “support” numbers that belonged to fraudsters who asked for sensitive information.
• Review all correspondence with your financial services provider. Keep a close eye on your account activity and statements. If you see mistakes or unauthorized activity in your account, contact your financial institution immediately.

Advanced technology has brought many benefits, but also many more opportunities for financial crimes. By taking the above steps, and others that may be needed, you can go a long way toward defending yourself against persistent and clever cyberthieves.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor Preston Carbone, Westford, MA  - EdwardJones.com/Preston-Carbone, Edward Jones, Member SIPC