The Domini 400 Social Index returned 21.07% for the year ended Sept. 30, outperforming the S&P 500's 20.36% and the S&P 400 Midcap Index's 13.93% on a total return basis.
Analysis by Mellon Equity Associates attributed the index's success relative to the S&P 500 to overexposure to the business machines sector and underexposure to international oil, tobacco and electric utilities. Holdings of Coca-Cola and WalMart had the most negative impact on the Domini Index. But the Domini 400 was helped by avoiding General Electric, Ford Motor and Microsoft, which pulled down the overall performance of the S&P 500.
The DSI is a midcap index that includes 400 stocks of companies that have passed multiple broad social screens.