The Ariel Investor Fund (ARGFX) edged back up in fund score in January to take the lead among the SRI equity universe. 

ARGFX has been a top scoring fund over the past 12 months, and at the start of 2015, it is the official leader with a score of 5.65. The next leader in this space is the Parnassus Core Equity Fund (PRILX), which is trading at a 5.60 and has shared time as the fund-score leader over the recent months. 

Another U.S. fund with a strong score is the Pax World Small Cap Fund (PXSCX), posting a score of 5.20.  Considering the small-cap score average in the U.S. is 3.42, this fund is a well above the average peer in the Small Cap space.  International funds continue to provide no competition to the US assets.

The best score for International diverse investing belongs to the Domini International Social Equity Fund (DOMAX), which is scoring at a 2.62, some 3 points below the US leader. 

Fixed-income funds still demonstrate impressive relative scores. The top position is the Calvert Bond Portfolio (CSIBX), as its score has moved up this year and is now holding steady at 3.85 points. Other fixed income names to investigate are the Parnassus Fixed Income Fund (PRFIX) and the Ave Maria Bond Fund (AVEFX).  All in all, after a strong 2014, SRI funds are providing stiff completion to non-SRI funds, so investors have plenty of strong SRI funds to choose from.

 

High Strength, High Risk Fund Score > 3, Above average volatility

		Name	DWA Fund Score	DWA rRisk Score
	Equity Funds and ETFs
		Ariel Fund Investor Class (ARGFX)	5.65	1.49
		Pax World Small Cap Fund Individual Investor Class (PXSCX)	5.20	1.09
		Parnassus Endeavor Fund (PARWX)	4.94	1.04
		Vanguard FTSE Social Index Fund Institutional Shar (VFTNX)	4.67	1.08
		Parnassus Fund (PARNX)	4.65	1.32
		Ave Maria Growth Fund (AVEGX)	4.51	1.11
		Neuberger Berman Socially Responsive Fund Investor (NBSRX)	4.49	1.14
		Pax World Growth Fund Individual Investor Class (PXWGX)	4.44	1.13
		Calvert Large Cap Value Fund Class A (CLVAX)	4.04	1.05
		VALIC Company II Socially Responsible Fund (VCSRX)	3.76	1.02
		Calvert Social Index Fund Class I (CISIX)	3.74	1.05
		Calvert Equity Portfolio Class A (CSIEX)	3.72	1.10
		Domini Social Equity Fund Investor Class (DSEFX)	3.71	1.13
		Calvert Small Cap Fund Class A (CCVAX)	3.64	1.33
		iShares MSCI USA ESG Select Scl Indx Fnd: NYSEARCA - KLD	3.60	1.03
		TIAA-CREF Social Choice Equity Fund Institutional (TISCX)	3.56	1.05
		iShares FTSE KLD 400 Social Idx Fd (ETF): NYSEARCA - DSI	3.55	1.01
		VALIC Company I Global Social Awareness Fund (VCSOX)	3.51	1.15
		Ave Maria Growth Fund (AVEGX)	3.67	1.18
		VALIC Company I Global Social Awareness Fund (VCSOX)	3.62	1.15
		Calvert Large Cap Core Portfolio Class A (CMIFX)	3.51	1.03
		Calvert Capital Accumulation Fund Class A (CCAFX)	3.30	1.27
		Walden Equity Fund (WSEFX)	3.29	1.01
		DFA U.S. Social Core Equity 2 (DFUEX)	3.17	1.17
		City National Rochdale Socially Responsible Equity (AHSRX)	3.22	1.00
		Parnassus Small Cap Fund (PARSX)	3.03	1.61

 

Low Strength, Low Risk Fund Score < 3, Below average volatility

		Name	DWA Fund Score	DWA rRisk Score
	Equity Funds and ETFs
		TIAA-CREF Social Choice Bond Fund Retail Class (TSBRX)	2.57	0.35
		City National Rochdale Socially Responsible Equity (AHSRX)	2.49	1.00
	Bond Funds
		Parnassus Fixed Income Fund (PRFIX)	2.83	0.31
		Calvert Short Duration Income Fund Class A (CSDAX)	1.96	0.18
		Calvert High Yield Bond Fund Class A (CYBAX)	1.92	0.45
		Calvert Ultra-Short Income Fund Class A (CULAX)	1.77	0.05
		Pax World High Yield Bond Fund Individual Investor (PAXHX)	1.14	0.49

 

Low Strength, High Risk Fund Score < 3, Above average volatility

		Name	DWA Fund Score	DWA rRisk Score
	Ave Maria Catholic Values Fund (AVEMX)		2.76	1.19
	Domini International Social Equity Fund Class A (DOMAX)		2.62	1.44
	DFA Emerging Markets Social Core Portfolio (DFESX)		2.50	1.59
	Parnassus Small Cap Fund (PARSX)		2.16	1.57
	Calvert International Equity Fund Class A (CWVGX)		1.94	1.30
	Appleseed Fund (APPLX)		1.87	1.09
	Calvert Global Water Fund Class A (CFWAX)		1.74	1.38
	Calvert International Opportunities Fund Class A (CIOAX)		1.72	1.40
	Pax World Global Environmental Markets Fund Instit (PGINX)		1.59	1.27
	Calvert Global Alternative Energy Fund Class A (CGAEX)		1.40	1.78
	DFA CSTG&E International Social Core Equity Portfo (DFCCX)		1.24	1.50
	DFA International Social Core Equity Portfolio Ins (DSCLX)		1.20	1.29
	Pax MSCI International ESG Index Fund Individual I (PXINX)		0.54	1.50
	PowerShares WilderHill Clean Energy(ETF): NYSEARCA - PBW		0.16	2.86

 

Benjamin Jones is a senior analyst and Steven Raymond a vice president for Dorsey, Wright & Associates, an independent and privately owned registered investment advisory firm based in Richmond, Va.

 

DWA Fund Score:    The DWA Fund score ranks the technical strength on a scale of 0 through 6 using an equation based on price trending and relative strength.  Funds with scores above 3 are considered by Dorsey Wright to be “investment grade”.   Funds with scores close to 6 are “market dominant."

DWA rRisk Score:     The DWA rRisk score measures the risk of the group on a relative basis. The calculation uses the 3 year Standard Deviation average of the group or fund divided by the Standard Deviation of the Cap Weighted S&P 500 Equity Index. Ratios higher than 1 demonstrate higher risk than the market benchmark and ratios less than 1 demonstrate lower risk than the market benchmark.

Disclosures: The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs.  Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions.  Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable (“information providers”).  However, such information has not been verified by Dorsey, Wright & Associates, LLC (DWA) or the information provider and DWA and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein.  DWA and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded).  Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.  Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products.  This document does not purport to be complete description of the securities or commodities, markets or developments to which reference is made.


Past performance is not indicative of future results.  Potential for profits is accompanied by possibility of loss.    You should consider this strategy’s investment objectives, risks, charges and expenses before investing.  The examples and information presented do not take into consideration commissions, tax implications, or other transaction costs.


Each investor should carefully consider the investment objectives, risks and expenses of any Exchange-Traded Fund ("ETF") prior to investing. Before investing in an ETF investors should obtain and carefully read the relevant prospectus and documents the issuer has filed with the SEC. ETF's may result in the layering of fees as ETF's impose their own advisory and other fees. To obtain more complete information about the product the documents are publicly available for free via EDGAR on the SEC website  (http://www.sec.gov).