A while back I ran an article about the ESG funds as a good way to invest in companies that are in line with your individual ethics, values, and politics. But there have also been articles critical of the so-called ESG's, claiming that they might be a good way to make people feel good about their decisions but also citing studies showing that they consistently fail to provide returns commensurate with other funds. This is why today's article on "The Big Picture" blog is so timely as it provides a listing of ESG funds that are actually top rated and beating the market. So it may indeed be possible to make profits while still promoting your favorite causes. The article is from Barron's so only the first paragraph can be had without subscribing but I'm sure some of you do. Enjoy the rest of our snowy weekend.
1-18-20 Top ESG Funds: Our Annual Ranking Finds Sustainable Funds Are Increasingly Beating the Market - Barron's
Mutual Funds That Rank
High on Sustainability Are Outperforming the Market
By
Jan. 17, 2020 5:45 pm ET Barron's
Maybe environmental, social, and governance, or ESG,
investing is a sustainable strategy, after all.
Barron’s fourth annual ranking of big-cap equity mutual
funds that received an “above average” or “high” sustainability rating from
Morningstar shows that they outperformed comparable funds with lower
sustainability ratings. The 189 actively managed funds that met those criteria
returned 30% in 2019, just shy of the 31.5% that the S&P 500 index returned
for the year. What’s more, 41% of the 189 funds beat the S&P 500—far...
to continue reading
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