ESG investing can be a great way to support socially conscious, sustainable, and ethical companies.
In advisory meetings, David and Ashley review ESG portfolios with their clients alongside traditional portfolios. Like their commitments to diversity and gender equality, the two strongly believe in using sustainable investing to make the world a better place.
Now, what is an ESG portfolio?
ESG stands for environmental, social, and corporate governance. An ESG portfolio is an investment portfolio made with socially responsible funds! ESG portfolios include companies with high ratings from research firms in environmental, social, and corporate governance (ESG). These are green companies that are committed to conscious, sustainable, and ethical business!
Why should you invest in ESG funds?
Well, they can perform just as well as traditional funds, if not better! For example, both Morgan Stanley and Morningstar recently analyzed the performance of ESG funds and found that they were better shielded from the pandemic’s economic downturn. Also, ESG companies are less likely to be sued than traditional companies, further contributing to their success!
Share this post with someone you know who cares about the environment and may be interested in investing in ESG companies.
Investments are subject to risk, including the loss of principal. Environmental, social, and governance (ESG) criteria are a set of non-financial principles and standards used to evaluate potential investments. The incorporation of ESG principles provides a qualitative assessment that can factor heavily into the security selection process. The investment’s socially responsible focus may limit the investment options available to the investor. Past performance is no guarantee of future results.