Introducing the HIP 100 and HIP 30 Portfolio Indices
Author: R. Paul Herman | Posted on
November
4,
2008
HIP Investor Inc, the creator of the HIP Scorecard™ in 2006, has applied its unique methodology to launch two new indices for investors seeking sustainable, profitable growth:
- HIP 100 Index™, designed to weight the HIP fundamentals (Human Impact + Profit) of the S&P 100 companies.
- HIP 30 Index™, designed to highlight the top 30 companies of the HIP 100.
As compared to the S&P 100 and Dow Jones Industrial Average (DJIA) respectively, the HIP indices seek to highlight how investors can make more money by doing good – and how Human Impact drives Profit, the core theme of HIP investing.
The HIP methodology tracks quantitative results in Human Impact and assesses a company’s Management Practices. Human Impact includes five categories – Health, Wealth, Earth, Equality and Trust – and ranks the sustainability of each company’s outcomes for customers, employees and suppliers. HIP Management Practices rates how deep sustainability is embedded into the decision-making systems of corporations.
As companies boost their Human Impact, and integrate sustainable practices into their firms, HIP expects those leaders to outperform financially. In addition, with the inclusion of the lagging companies, the HIP Index provides an incentive for a competitive “race to the top,” delivering a positive result for you, your portfolio and your world.
The HIP 100 Index re-balances the S&P 100 for sustainability results according to the HIP methodology, and compares it to the base index. The HIP 30 Index ranks the top thirty companies of the HIP 100 group, and compares it to the DJIA.
Questions or comments about the HIP approach? Post your thoughts below.
Interested in licensing the HIP Index for a portfolio, ETF or mutual fund?
1 Comment
[...] of the end of 2010, the HIP100 index has outperformed the S&P100 after fees. The HIP100 is Herman’s reweighing of the [...]
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