ETFs, SMAs Explode In SRI Market

Exchange-traded funds and separate accounts are driving the growth of socially responsible investing.

While mutual funds still dominate the SRI space with more than 85% of the market, ETFs and SMAs will outpace them in growth, according to a new report. SRI investing in separate accounts more than doubled in the past two years and ETFs appeared for the first time in a report just published by the Social Investor Forum.

The report shows that SMAs held $39.5 billion in SRI assets in 2007, up from $17.3 billion in 2005.

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