Domini Social Index 400

(redirected from Domini 400 Index)

Domini Social Index 400

An index tracking 400 publicly-traded companies in the United States known for socially responsible investing. The index excludes companies that produce alcohol, tobacco, weapons, nuclear power, and other controversial products. The Domini 400 includes around 250 companies on the S&P 500 and other companies known for sustainable business practices. It was launched in 1990 and is weighted for market capitalization. See also: Ethical investing, Green fund, Islamic finance.

Domini Social Index 400.

The Domini Social Index 400 is a market capitalization weighted index that tracks the performance of companies that meet a wide range of social and environmental standards.

For instance, the index screens out companies that manufacture or promote alcohol, tobacco, gambling, weapons, and nuclear power. It includes others that have outstanding records of social responsibility.

About half the stocks included in the Standard & Poor's 500 Index (S&P 500), on which the Domini Index is modeled, make the cut, including giants like Microsoft and Coca-Cola. The other stocks are selected based on the industries they represent and their reputations for socially conscious business practices.

The index is considered a benchmark for measuring the effect that selecting socially responsible stocks has on a financial portfolio's performance. This practice is also called social screening.

References in periodicals archive ?
With each year the Domini 400 Index tells us more about the performance of socially screened portfolios.
He notes that it helped create organizations such as KLD Research & Analytics, the social research firm in Boston that developed the Domini 400 Index, and the Investor Responsibility Research Center (IRRC) as information providers.
The Domini 400 index of socially responsible companies has outpaced the S&P 500 over the past 10 years, gaining 13.