ESG investments are rated on their environmental, social, and corporate governance impacts.
Research suggests ESG investments are more lucrative and more stable than other traditional fund types.
In the past, if an investor wanted to put their money where their mouth was and invest in companies that aligned with their morals, the only option was to avoid certain companies or markets. But as impact investing has evolved and expanded, so have the opportunities for investors to build portfolios they truly believe in.
One such opportunity is ESG investing, a method of sustainable investing that doesn t just consider an asset s rate of return. It scores a company in three crucial areas pulled straight from the acronym environmental, social, and corporate governance to help investors build portfolios they can be proud of.