It’s hard to be a consumer these days.

We want to buy the best brands, but we don’t want to support companies that waste natural resources or pollute the Earth.

We want to find the lowest priced options, but we don’t want to back companies that pay pennies on the dollar to outsourced workers in impoverished countries.

#-ad_banner-#​More than ever, buyers are focusing on the social responsibility of companies — and this trend towards guilt-free consumption is changing how consumers view their purchasing habits.

From donating shares of corporate profits and promoting sustainable products to offering equal employment rights to people of all genders, ethnicities and sexual orientations, the correlation between strong earnings and corporate social responsibility has never been higher.

For like minded investors, an obvious play might be to invest in individual companies, but that approach may open your portfolio to unnecessary risk.

Take Tesla Motors, Inc. (Nasdaq: TSLA) for example. It’s no wonder why consumers consider a company like Tesla a breath of fresh air — not only does it offer an innovative, new product, but the company’s vehicles are designed with global preservation in mind.

The downside is that its shares hold a high valuation — TSLA trades at $277 per share, with a price-to-book ratio nearly 22 times higher than the industry average.

Or how about the semiconductor company Cree, Inc. (Nasdaq: CREE)? Its incandescent bulbs are 84% more energy efficient than compact fluorescent bulbs and last 10 times longer; however, the company has a price-to-earnings ratio of more than 42 and its share price has dropped more than 27% in the last year alone.

But luckily, there is a way that allows you to invest with your conscious without sacrificing value or performance.

The iShares MSCI USA ESG Select ETF (NYSE: KLD) tracks U.S. companies deemed environmentally and socially responsible.

Sure, its name is a mouthful, but this exchange traded fund is a perfect way for investors to profit from the “guilt free” trend.

Investing in KLD provides you with three key benefits:

1.    It provides exposure to socially responsible companies traded on U.S. exchanges. (And due to the nature of their operations, all cigarette companies are excluded from the list.)
2.    It offers you access to nearly 100 large and mid-cap stocks that have been screened for “guilt free” characteristics.
3.    It allows you to invest based on your personal values without sacrificing potential gains.

Don’t be fooled into thinking KLD is just a “feel good” investment. Its holdings are some of the most successful and strongest performing companies in the world, and its performance has reflected as much.

Here is a list of KLD’s top 10 holdings:

These companies are innovators in their respective industries and are respected for the high social responsibility standards placed on management. 3M, for example, who has reduced its volatile organic air emissions by 95% over the last two decades through the use of pollution-prevention programs and equipment.

Naturally, KLD’s performance is a reflection of its holdings. But most surprising, the fund has not only mirrored the S&P 500 but outperformed it since KLD’s inception.

Going back to the 2008 crash, KLD dropped with the broader market. But it managed to outperform the S&P 500 when the economy was at its worst and has had a more impressive rebound — jumping 185% since its March 2009 bottom, compared to the S&P’s 171% bounce.

If history holds true, socially responsible investors could see further future gains, because as the S&P continues to see new highs, KLD is likely to follow suit.

The “guilt free” consumption trend is growing stronger. More companies are rethinking their business models to better market themselves to socially conscious buyers, equal rights groups and environmental activist organizations.

Risks to consider: KLD has a beta of 1.01 making it roughly just as volatile as the S&P 500. And based on its performance history, it’s likely to be equally susceptible to any negative trends the market may experience as some analysts are expecting a correction in the near future.

Action to take –>  “Guilt free” consumption is changing how consumers think and purchase. Companies that brand themselves as socially responsible are positioned to benefit from this trend. Investors looking to invest in strong, well-performing companies known for social responsibility should look to buy shares of KLD.

The trend toward guilt-free consumption could be a true game-changer in how consumers perceive the markets. My colleague Andy Obermueller devotes his time to finding new game-changing trends and pinpointing which little-known companies could skyrocket because of them. In fact, he just published a report detailing his predictions for the coming year called, “The Hottest Investment Opportunities For 2015.” For more information on Andy’s predictions, click here.