ESG stands for Environmental, Social, and Governance which refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business.
Back in the day, investing in socially conscious funds meant you paid high fees and likely experienced below average returns. The good news is that there are more companies doing the right thing and more investment opportunities within this segment. As a result, investment management fees are more reasonable. There is new data emerging that suggests that companies who pay attention to their sustainability and ethics are better businesses to invest in.
They're often marketed as solely environmental funds. We're here to provide more info. What are these funds? Are they actually supporting ethical and conscious companies? Here's one side of the argument below.