"But more recent research continues to demonstrate that such assumptions are questionable, at best." In 2021, you may want to allocate some of your money toward funds with a focus on addressing climate change. Below are some of the options. (For a number of reasons, 401(k) plans — which hold nearly a third of all U.S. retirement assets — lag in their environmentally focused funds. Yet employees' demand for these choices is slowly changing that.) Betterment "Values-driven investing has steadily gained in popularity in recent years, and surged amid the Covid-19 pandemic," Khentov said. Half the stocks in Betterment's climate portfolio screen out companies holding fossil fuel reserves and the other half invests in companies with the lowest carbon footprint, Khentov said. The bonds, meanwhile, are linked to environmentally beneficial projects, such as pollution prevention and energy efficiency.