Socially Responsible Investing (SRI) Stocks vs. S&P 500: A Comparison

Socially responsible investment stocks provide investors with a great way to get involved in the market and make a difference in society. You could also choose to invest in the S&P 500 instead of an individual stock. Here are a few things to consider about investing in socially responsible investment stocks vs. the S & P 500. 

Potential

When you compare the potential of an individual socially responsible stock to the S&P 500, the individual stock is going to have much more. You are going to be able to benefit from large increases in price. With the S&P 500, you are going to get more gradual growth without as much potential.

Diversification

Although there is much more potential for growth with an individual stock, you are not going to have the diversification that you can get by investing in the S&P 500. When you invest in the S&P 500, you are basically going to be investing in the stock market as a whole. Historically, the S&P 500 has always increased in value over the long-term. Therefore, you are basically guaranteeing that you are going to make some profit over time. With an individual company, you could choose one that ends up going bankrupt.