ESG funds often promise higher expected returns, lower risks, impact, or the opportunity for people to align their investments with their values.
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| |KEY TAKEAWAYS
- ESG funds often promise higher expected returns, lower risks, impact, or the opportunity for people to align their investments with their values.
- While ESG factors alone do not increase expected returns or lower risks, an ESG portfolio can still maintain sound investment principles.
- Even though real-world impact is hard to quantify, ESG funds can be effective at aligning investors’ portfolios with their values.