ESG Investing: What Is Environmental, Social, and Governance? seekingalpha.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from seekingalpha.com Daily Mail and Mail on Sunday newspapers.
As the stock market becomes more volatile due to rising inflation and the looming interest rate hike, it has become even harder for investors to identify individual stocks that will deliver solid returns.
Channel3000.com
January 19, 2021 7:17 AM newsfeedback@fool.com (Catherine Brock)
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January 21, 2021 8:22 AM
As it turns out, investing for good can be profitable too. That’s the story behind the amazing rise in ESG investing over the last several years. Investors are flocking to ESG (environmental, social, and governance) funds in particular, dumping a net $97 billion into ESG ETFs and sparking the launch of some 200 new ESG ETFs in 2020 alone.
Why have ESG funds become so popular? During market contractions in 2018 and 2020, companies with solid ESG track records showed more resilience than their non-ESG peers. Even better, that resilience doesn’t come at the expense of performance in the good times. As a broader point of comparison, the S&P 500 ESG index has outperformed the standard