ESG Investment Growth

Research shows ESG investments can deliver competitive returns while aligning with your values. Many ESG funds have matched or outperformed traditional benchmarks over the long term, with the added benefit of supporting sustainable business practices.

ESG investments consider Environmental (climate impact, resource use), Social (labor practices, community relations), and Governance (board diversity, executive compensation) factors. Companies are screened and scored on these criteria.

ESG funds typically have slightly higher expense ratios (0.15-0.75%) compared to traditional index funds due to additional research and screening. However, the fee difference has narrowed significantly as ESG investing has become mainstream.

Consider your values alignment, investment goals, expense ratios, and fund methodology. Some funds use negative screening (excluding harmful industries), while others use positive screening (selecting leaders in sustainability).

Many employer retirement plans now offer ESG options. Check with your HR department or plan administrator. If not available, you can invest in ESG funds through personal IRA or taxable accounts.

ESG integrates sustainability factors into investment analysis. SRI (Socially Responsible Investing) typically excludes certain sectors. Impact investing actively seeks measurable positive social/environmental outcomes alongside financial returns.