Socially Responsible Investing
Also called: SRI, ethical investing, negative screening, exclusion list
SRI excludes companies or sectors an investor objects to — tobacco, weapons, fossil fuels, gambling. It's the oldest form of values-based investing, with roots in religious funds centuries old. Its financial effect is a tracking error against the broad market that can run in either direction, and its real-world effect depends on whether exclusion actually raises the excluded firms' cost of capital.