Tomorrow will mark the 47th year of Earth Day observations. The day honors the importance of conservation initiatives to protect the environment. Global warming has now become a burning issue, raising awareness among mankind. 

March smashed the new global warming record despite no presence of the El Nino effect, as per an article published on Independent. So long it was presumed that global warming leads to climate change causing drought in one region and flood in others. But as an eye-opener, economists have come up with the theory that global warming can “cause job losses, recessions and even a tumbling stock market.” 

But should just saving the climate be our only goal? Isn’t it better to have a look at the other corners of the society and enhance the standard of living too?

This makes it all the more important for investors to be socially responsive while creating their investment portfolio. Let’s take a look what’s hot and what’s not on the occasion of Earth Day (read: Sustainable Investing: What Is It and Why Is It Hot Now?).

Low Carbon ETFs

Fighting the perilous outcome of greenhouse gases by building a low-carbon economy has lately become a global chore. As a result, low-carbon ETFs have caught investors’ attention. Investors can play this trend by targeting low carbon ETFs like iShares MSCI ACWI Low Carbon Target ETF (CRBN) and SPDR MSCI ACWI Low Carbon Target ETF (LOWC – Free Report) .

CRBN provides investors’ global exposure to companies that are less dependent on fossil fuels. American firms account for half of the portfolio while other countries like Japan, United Kingdom and Canada receive single-digit exposure each. For LOWC too, the U.S. is the top country with about half exposure (read: VanEck Vectors Introduces Green Bond ETF).

Another fund, Etho Climate Leadership U.S. ETF (ETHO – Free Report), offers exposure to companies with the most climate-efficient profiles within their respective industries.