Introduction
I’ve always believed that how I invest says as much about my values as how I spend. As more Americans wake up to questions of sustainability and ethics, one area drawing real attention is whether our money supports cruelty-free practices—especially in mutual funds. If I invest in a fund, am I also investing in animal testing? Does my portfolio support industries that violate animal welfare standards?
This concern led me to explore animal cruelty-free mutual funds, and during my research, I came across Angel Broking. Though Angel Broking is an Indian firm, and I live and invest in the U.S., I found the platform’s exposure to ethical investing ideas intriguing. But let’s be clear upfront—Angel Broking itself doesn’t offer U.S. mutual funds. Still, its commitment to democratizing investment inspired me to investigate how ethical investment, especially cruelty-free funds, aligns with U.S. financial markets.
Table of Contents
Why Animal Cruelty-Free Investing Matters in 2025
When I first considered cruelty-free investing, it felt like a niche concern. But it’s not. In 2025, Americans are paying attention. According to a Morningstar report, more than 65% of millennials and Gen Z investors factor environmental and ethical concerns into their investment decisions. That’s a big shift from a decade ago.
Animal cruelty-free investing means avoiding companies that:
- Test products on animals (cosmetics, pharma, etc.)
- Use animal-derived ingredients (e.g., leather or gelatin)
- Participate in factory farming
- Invest in animal entertainment industries (circuses, marine parks)
Ethical Investing Is Not the Same as ESG
A lot of platforms throw around terms like “ethical investing,” “ESG,” and “impact investing.” These terms are related, but they’re not interchangeable. ESG—Environmental, Social, Governance—scores don’t always exclude companies that test on animals. Many pharmaceutical companies score high on ESG but fail animal cruelty screens.
So, I learned the hard way that a high ESG score doesn’t always mean cruelty-free. That distinction is critical. If I want a portfolio aligned with my values, I have to dig deeper than ESG.
What Is a Cruelty-Free Mutual Fund?
A cruelty-free mutual fund is a pooled investment vehicle that screens out companies violating animal welfare standards. Most of these funds use negative screening to exclude industries such as:
- Animal testing
- Factory farming
- Fur and leather production
- Animal-based entertainment
Some also use positive screening to include:
- Plant-based food producers
- Vegan biotech
- Green tech that reduces animal exploitation
A Table of Common Screens in Cruelty-Free Funds
| Screen Type | Examples of Excluded Companies | Examples of Included Companies |
|---|---|---|
| Animal Testing | Johnson & Johnson, Procter & Gamble | e.l.f. Beauty, The Honest Company |
| Factory Farming | Tyson Foods, JBS USA | Beyond Meat, Oatly |
| Fur/Leather | Coach, Canada Goose | Allbirds, Matt & Nat |
| Entertainment | SeaWorld, Ringling Bros. | Earthwatch Institute, National Park Support |
| Cosmetics | L’Oréal (some lines), Estée Lauder | Pacifica, Alba Botanica |
As you can see, it’s not just about avoiding “bad” companies—it’s about uplifting the ones doing better.
