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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 [.
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.
The air may have been slowly escaping the renewable energy stock balloon lately, but it could be an opportune time to buy the dip for value-focused investors. Based on a Forbes article, renewable energy stocks “had a relatively tough 2021, declining by about 5% over the year, compared to the S&P 500 which gained almost [.
Environmental, social, and governance (ESG) investing will continue to be a force to be reckoned with in 2022, with some analysts saying that it will essentially drive the capital markets. Given that, ESG is no longer a niche investing alternative, but a global phenomenon.
Green bonds, which are becoming part of the fixed income component of environmental, social, and governance (ESG) investing, are rising in popularity, putting the spotlight on climate-focused ETFs like the newly introduced FlexShares ESG & Climate Investment Grade Corporate Core Index Fund (FEIG).