Portfolio instability with SRI assets and investors' ranking feedback.

Socially responsible investment (SRI) can help mitigate behavioral biases and promote sustainable portfolio growth. Due to their long-term focus, SRI portfolios may be more stable than conventional ones, even during financial crises and economic downturns. Additionally, the way responsible investment information is framed may influence investor behavior. Using incentivized experiments with 306 students, we compare a baseline treatment with two ranking treatments, in which participants received ranking feedback on their SRI or anti-SRI investments. We present three key findings. First, portfolios with a higher share of SRI investments demonstrate greater stability across all treatments. Second, portfolio instability varies by framing, with the brown ranking treatment leading to higher stability than the green. Third, ranking feedback motivates participants to invest more in SRI and less in anti-SRI assets, particularly under the green ranking treatment.