Barclays Global Investors has launched its second exchange-traded fund designed specifically for socially responsible individual and institu...

Barclays Global Investors has launched its second exchange-traded fund designed specifically for socially responsible individual and institutional investors.

The iShares KLD 400 Social Index Fund seeks to maximize exposure to companies that have positive environmental, social and governance characteristics.

The fund seeks to track the Domini 400 Social(SM) Index created and maintained by KLD Research & Analytics, a Boston-based independent investment research and index firm with expertise in socially responsible investing.

The Domini 400 Social(SM) Index consists of 400 companies drawn primarily from the S&P 500 Index and the Russell 3000 Index. KLD includes in the index companies with positive environmental, social and governance performance relative to their industry and sector peers, and in relation to the broader market.

The iShares Funds are index funds that are bought and sold like common stocks on securities exchanges. Advantages of ETFs are their relatively low cost, tax efficiency and trading flexibility.