Are You Ready for Your Portfolio to Make a Difference?

Interest in investing with purpose has grown significantly in recent years, and that shift shows no signs of slowing down. More investors are looking for ways to align their portfolios with their personal values, whether that means supporting environmental sustainability, social causes, or community development. In fact, impact investments now account for $1.164 trillion in managed assets worldwide, with 37% of that total held in North America (1).

If you're curious about how impact investing works and whether it might fit into your own financial strategy, here's what you need to know.

What Is Impact Investing?

Impact investing involves directing capital toward investments with a measurable or tangible goal for social or environmental change. The specific criteria depend largely on your personal values and priorities. For example, you might choose to invest in a company committed to planting a set number of trees each year, or in an organization that provides resources to school districts in low-income communities.

You may also come across related terms like socially responsible investing (SRI) and environmental, social, and governance (ESG) investing. While closely related to impact investing, these approaches typically follow more specific and structured criteria, such as ethical business practices, environmental conservation standards, or measurable community impact (2).

It's worth noting that impact, SRI, and ESG investments carry certain risks tied to their selective criteria. Because these strategies exclude securities of certain issuers for non-financial reasons, investors may forgo some market opportunities, and the overall universe of available investments becomes smaller as a result.

Setting Realistic Expectations for Impact Investing

A common misconception is that values-aligned investing requires sacrificing financial performance. The data tells a more encouraging story. In a recent survey of impact investors, 88% reported that the financial performance of their investments either met or exceeded their expectations (3). Making a difference and pursuing solid returns are not mutually exclusive goals — but as with any investment strategy, expectations should be grounded in realistic, individualized planning.

Tips for Getting Started With Impact Investing

If you're considering adding impact investments to your portfolio, here are a few concepts worth keeping in mind:

• Clarify your values. What specific type of impact matters most to you? Sustainability, social justice, faith-based principles, and community development are just a few of the many possible focus areas. Defining what you're hoping to accomplish helps narrow the field of options.

• Explore your investment options. A wide range of investment vehicles are structured specifically to pursue impact-related goals. As your values become clearer, the types of investments that align with them often become easier to identify.

• Review impact reports. Many companies and funds publish impact reports that outline how they're working toward measurable social or environmental goals. These reports are a useful tool for evaluating whether an investment truly reflects the outcomes you're looking for.

Is Impact Investing Right for You?

Impact investing offers a way to keep your portfolio aligned with what matters most to you personally, without necessarily compromising on financial goals. As you weigh whether this approach fits your broader financial plan, we're here to help. Reach out anytime — we may be able to provide additional information or point you toward resources that can help guide your decision.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2026 FMG Suite.

Sources:

1. TheGIIN.org, 2023

2. Investopedia.com, March 23, 2023

3. TheGIIN.org, June 27, 2023