Investing & Markets

Values-Based & Mission-Aligned Investing

Go beyond ESG screens to build a portfolio that reflects your personal mission, from faith-based investing to shareholder advocacy and community impact.

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Values-Based vs. ESG Investing

ESG investing focuses on financial risk, values-based investing starts with your beliefs
Values-based investors pick what matters most, then build a portfolio around those priorities
The two can overlap, but values-based investing is driven by mission, not risk-adjusted returns
Your portfolio becomes an extension of your identity, supporting aligned businesses

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Values-Based vs. ESG Investing

ESG investing focuses on financial risk, values-based investing starts with your beliefs
Values-based investors pick what matters most, then build a portfolio around those priorities
The two can overlap, but values-based investing is driven by mission, not risk-adjusted returns
Your portfolio becomes an extension of your identity, supporting aligned businesses

Faith-Based Investing

Christian funds often exclude alcohol, tobacco, gambling, and abortion-related companies
Shariah-compliant investing prohibits interest-bearing debt and excludes certain industries
Jewish values investing may emphasize fair labor, environmental care, and community impact
Faith-based funds have grown significantly, with dozens of options across asset classes

Shareholder Advocacy and Proxy Voting

As a shareholder, you can vote on corporate policies like environmental practices and pay
Filing shareholder resolutions puts specific issues on the ballot at annual meetings
Engagement means talking directly with company leaders to push for better policies
Sustained shareholder engagement has driven real changes in climate disclosure and diversity

Community Investing and CDFIs

CDFIs channel capital to underserved communities for housing, small businesses, and more
CDFI notes typically pay modest fixed returns while creating measurable local impact
You can use CDFI notes as a bond alternative, often with comparable credit quality
Some community investments are available through brokerages; others require direct purchase

Defining Your Personal Investment Policy

List the issues that matter most, environment, human rights, faith, community, etc.
Rank your values and decide which are hard exclusions vs. flexible preferences
Document your criteria in a written policy so your advisor can apply them consistently
Revisit your values annually, priorities may shift as your life and understanding evolve

Measuring Impact and Understanding Tradeoffs

Define concrete metrics like carbon intensity, board diversity, or community dollars directed
Use third-party tools that map your holdings to UN Sustainable Development Goals
Excluding industries narrows options and may cause returns to differ from broad indexes
Fewer options in bonds and alternatives can limit diversification in a values-aligned portfolio

Building a Values-Aligned Portfolio

Stocks offer the widest range of screened options, from ESG index funds to custom accounts
Bond options include green bonds, social bonds, CDFI notes, and screened bond funds
Alternatives like impact-focused private equity and sustainable real estate deepen alignment
Cash can be held at mission-aligned banks that reinvest deposits in community development

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The information above is for educational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. Any historical figures are for illustration only, and past performance does not guarantee future results. Tax laws, regulations, and contribution limits change frequently, the details here may become outdated. Individual circumstances vary. Consult a qualified financial advisor, CPA, or attorney for guidance specific to your situation. Rubric Advisors is registered with the California DFPI; registration does not imply a certain level of skill or training.

Values-Based & Mission-Aligned Investing

Values-Based vs. ESG Investing

Faith-Based Investing

Shareholder Advocacy and Proxy Voting

Community Investing and CDFIs

Defining Your Personal Investment Policy

Measuring Impact and Understanding Tradeoffs

Building a Values-Aligned Portfolio

Values-Based vs. ESG Investing

Faith-Based Investing

Shareholder Advocacy and Proxy Voting

Community Investing and CDFIs

Defining Your Personal Investment Policy

Measuring Impact and Understanding Tradeoffs

Building a Values-Aligned Portfolio

Related Topics

Impact Investing

Shareholder Activism & Proxy Voting

Accredited Investor Overview

Values-Based & Mission-Aligned Investing

Values-Based vs. ESG Investing

Faith-Based Investing

Shareholder Advocacy and Proxy Voting

Community Investing and CDFIs

Defining Your Personal Investment Policy

Measuring Impact and Understanding Tradeoffs

Building a Values-Aligned Portfolio

Values-Based vs. ESG Investing

Faith-Based Investing

Shareholder Advocacy and Proxy Voting

Community Investing and CDFIs

Defining Your Personal Investment Policy

Measuring Impact and Understanding Tradeoffs

Building a Values-Aligned Portfolio

Related Topics

Impact Investing

Shareholder Activism & Proxy Voting

Accredited Investor Overview