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Sustainable investing offers another opportunity for advisors to have deeper, more meaningful relationships with their clients. ESG investing — or “sustainable investing” — continues to gain awareness, acceptance, and assets, but skepticism among advisors is still common, according to a FlexShares insight based on The Flexible Advisor podcast.
As sustainable investing continues to affirm its place among traditional strategies, many advisors assume that sustainable investing entails a trade-off in returns. “The facts have been for a long time that sustainable funds, on the whole, perform just as well as any other type of funds,” Jon Hale, director of ESG strategy at Morningstar, said [.
Now more than ever, especially with skyrocketing oil prices, environmental, social, and government (ESG) investing is becoming a core component of the capital markets. As the world looks to take the necessary measures to reduce its carbon footprint, look to niche areas like climate change for opportunity.
FlexShares' top-performing ETFs last week largely have one commonality: they all integrate ESG criteria into their investment strategies. Surging commodity prices, exacerbated by Russia's invasion of Ukraine and the ensuing halt in Russian global imports, have emphasized the need for improving the scale of clean energy sources across the globe.
Environmental, social, and governance (ESG) investing has seen exponential growth over the past years. While it presents an opportune growth strategy, the question investors need to ask is whether the strategy they're using addresses future risk.
Sustainable investing offers another way to manage risk in portfolios without limiting performance. In fact, over a one-year period, the S&P 500 ESG index has returned 20.25%, while the S&P 500 index has only had returns of 16.39%, according to S&P Dow Jones Indices.
A global finance coalition of investors, banks, and insurers controlling $130 trillion in assets said it would use that capital to hit net zero emissions targets in its investments by 2050. “The group, called the United Nations Glasgow Financial Alliance for Net Zero, is made up of 450 banks, insurers and asset managers in 45 [.