ESG funds often promise higher expected returns, lower risks, impact, or the opportunity for people to align their investments with their values.
By Jim Whittington, Head of Responsible Investment, Senior Portfolio Manager, and Vice President | Lacey Huebel, Head of Responsible Investment, North America, Portfolio Manager, and Vice President | Eric Geffroy, Senior Investment Strategist and Vice President
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.