Domini Social Index 400

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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 ?
firms in the Russell 1000, the S&P 500 and the Domini Social Index and are ranked in eight stakeholder categories: shareholders, community, corporate governance, diversity, employees, environment, human rights and products.
QHSAS 18001, Dow Jones Sustainability Index and the Domini Social Index 400.
These findings have been clearly borne out by the success of the Domini Social Index (DSI), which is a screened, slightly trimmed-down cousin of the S&P 500 (a roster of 500 large companies that represents the stock market as a whole).
By its third anniversary last April, the Domini Social Index -- an index fund of 400 socially screened stocks designed to be sort of an ethical Standard & Poor's 500 -- had a total return of 56.
KLD's ranking is based on its survey of more than 1,100 firms included in the S&P 500, the Russell 1000 and the Domini Social Index.
Investor groups including Domini Social Index and Calvert Mutual Funds also have developed green yardsticks.
the independent investor-research firm based in Boston, compiled the seventh annual ranking based on its survey of more than 1,100 firms included in the S&P 500, the Russell 1000 and the Domini Social Index.
All the research I've done shows social screens have no effect on performance," says Kurtz, referring to his in-depth, risk-adjusted analysis of the Domini Social Index, a socially screened index of 400 companies that's akin to the Standard & Poor's 500.
KLD determines the composition of the Index but is not the manager of the Domini Social Index Portfolio, the Domini Social Equity Fund, or the Domini Institutional Social Equity Fund.
In May 1990, KLD launched the Domini Social Index, the first benchmark for socially screened performance.