Do ESG Funds Strengthen Investor Portfolios?
Earlier this year the SEC proposednew reporting rulesfor investment advisors and asset managers regarding environmental, social, and governance (ESG) investments. While the SEC aims to establish standardized disclosure requirements with this rule, if adopted, it would provide investors and advisors with more robust data on which to assess their investment decisions.
But how can advisors make the most of the data available to them? What insights can they offer to clients who raise questions about ESG?
In our latest white paper,Is It Easy Being Green? How ESG-Focused Funds Impact Client Portfolios, we examined key questions about ESG-marketed funds and whats under their hoods.
Who Are the Big Players in the ESG Game?
The following mutual funds and ETFs represent the 25 most popular ESG-marketed funds, being the largest by assets under management. Many of the funds come from some of the biggest name brand asset managers, however, their ESG Scores and ratings dont particularly stand out amongMSCI scoring criteria. On average, these large ESG-marketed funds earned an 8.61 out of 10 ESG Score from MSCI, while the average score for a universe of 4,867 funds (US equity and fixed income funds with at least $100 million in assets) is 7.52.
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