![[03/26/24] ESG Investment Does Not Mean ‘Sacrificing Returns’: Report](https://media.licdn.com/dms/image/v2/D5612AQGjmxD51YLpnA/article-cover_image-shrink_720_1280/article-cover_image-shrink_720_1280/0/1711476413263?e=2147483647&v=beta&t=dsbXUL-_qGlTVDK9fCYXs73qJ14jUDgXRPum_5hoVds)
[03/26/24] ESG Investment Does Not Mean ‘Sacrificing Returns’: Report
?? Want ETF news delivered straight to you?
Register?for free at etf.com for unlimited access to news and trusted data, and gain expert analysis from our other exclusive subscriber-only newsletters. ??
WEEKLY ROUNDUP OF ETF FILINGS, LAUNCHES & CLOSURES
ESG investing critics have cast doubt about the success of these strategies, but PitchBook Data, Inc. said in a paper last week that using ESG as a guiding investment principle does not necessarily mean “sacrificing returns.”
In “The State of Private Market ESG and Impact Investing in 2024,” Pitchbook, which tracks private and public capital markets, noted that the performance of ESG-committed asset managers has varied, as does the “maturity and caliber of ESG programs.”
The paper comes as investors’ ESG commitment has waned from its 2020-2021 peak—a result of intense backlash from conservatives, some of whom have proposed making ESG investment a felony.
Over the past year, the iShares ESG Aware MSCI USA ETF (ESGU) and Xtrackers MSCI USA Leaders Equity ETF (USSG) have hemorrhaged $9.2 billion and $2.5 billion in outflows.
But citing its 2023 report that considered fund returns for “signatories” to Principles for Responsible Investment (PRI), and more recent data, Pitchbook wrote that ‘ultimately, there was no statistically significant difference in performance among PRI signatories compared to their peers.”
It noted that some asset managers “are leaning into ESG as a value creation and protection tool in the challenging macroeconomic environment.”
By James Rubin
Below is a roundup of the key developments in the ETF industry for the seven-day period ending March 22, 2024:??
ETF Spotlight: GLD Rides on Fed’s Non-Hike Fed policy joins other factors in driving investors toward gold.
Direxion Files to Leverage Popular JEPI, JEPQ ETFs ETFs add risk to funds providing protection. Also, Hartford files to launch systematic fund.
BlackRock Launches Fund That 'Tokenizes' Cash, T-Bills BlackRock calls the fund on the Ethereum Blockchain "the latest progression of our digital assets strategy."
Stock ETFs Keep Rising as Fed Stays Out of the Way Fed Chairman Powell said little Wednesday to change the bullish narrative powering equities.
Grayscale Plans Fee Cut to High-Cost Bitcoin ETF, CEO Says Comments to CNBC come as GBTC had its biggest single-day outflow of $643 million Monday.
Featured Fund
SOXL is an aggressive and bullish 1-day bet on a concentrated portfolio of the 30 largest US-listed semiconductor companies, including manufacturers and providers of services or equipment associated with semiconductors. The funds index employs market-cap-weighting, with the weights of the top five securities capped at 8% and the remaining securities at 4%.
领英推荐
WHAT TO WATCH
Are Bitcoin ETFs Breaking Rules of Technical Charts? Computer screens are suggesting a pullback; these funds will show if they have "crypto-might."?Read More
‘Harder to Get There’: Lizarraga on Women Excelling Patricial Lizarraga says her experience with women CEOs in banking inspired her to create Hypatia Capital.?Read More
What Are IPO ETFs and How Do They Work? Reddit’s initial public offering shines light on IPO ETFs.?Read More
Commodity ETFs Having Their Moment—Again Sticky inflation suggests these commodities funds may boost portfolios.?Read More
On-Demand Webinar: AI and the Future of ETFs. Catch our on-demand webinar as experts from Bloomberg, Vident and Deloitte discuss how AI is revolutionizing traditional asset management practices. Watch Now
ADVISOR UPSIDE PODCAST
The president and founder of The ETF Store, Nate Geraci, shares his insights on everything from building portfolio models and helping clients understand crypto to providing value against the forces of artificial intelligence.
In this first episode of Advisor Upside, the veteran financial advisor and ETF enthusiast sat down with etf.com wealth management editor, Jeff Benjamin, for a conversation about where the financial planning industry has been and where it’s heading.?Listen Now
LISTEN AND SUBSCRIBE ON: Apple Podcast | Spotify | YouTube
TALK ETFS VIDEO SERIES
Traders love leveraged ETFs. There’s over $100 billion invested across 268 U.S.-listed leveraged exchange-traded funds.
The Direxion Daily Concentrated Qs Bull 2x Shares (QQQU) adds leverage to a basket of the seven largest stocks in the Nasdaq, a group that is popularly known as the Magnificent 7.
In this episode of Talk ETFs, etf.com senior analyst Sumit Roy sits down with Direxion managing director Ed Egilinsky to discuss QQQU, as well as its counterpart, the Direxion Daily Concentrated Qs Bear 2x Shares (QQQD).?Watch Now | YouTube
Want more ETF news delivered straight to you?
Register?for free at etf.com for unlimited access to news and trusted data, and gain expert analysis from our other exclusive subscriber-only newsletters. ??
Head of Strategic Client Solutions ME | Expert in Structured Investments and Tailored Financing Solutions & Islamic Finance for UHNWI | Generating Innovative Wealth Solutions
8 个月Most recent studies showed a mixed outcome, based on a single-model-risk adjusted returns, ESG investing produce similar returns than non-ESG, whereas analysis using multifactor models shows below average returns. A lot depends on the strategy used to adhere to ESG (activist approach, negative and positive screening and impact investing, PRI). Despite there is some guidance available on ESG investing (GRI, SASB) there is still a lack of globally adapted, globally consistent guidance on how to achieve a best in class investment adhering to ESG. In addition, simple returns may be misleading as various measurement methodologies may be needed to measure the appropiate performance. ESG should reduce the reputational risk of such issuer and therefore the expected cashflows would be treated with a more favorable discount rate. However the cost of implementation & monitoring and disclosing ESG related issues must be considered. Increase adaption to ESG will happen as soon as there is a higher alignment from the various stakeholders on how to best address ESG in the investment process, selection and portfolio selection and this across the full investment universe.
“Retired”
8 个月Sorry but I will respectfully disagree with this statement. : "ESG Investment Does Not Mean ‘Sacrificing Returns’ ESG and its policies needs to be ended. Please do more research in what it's goals are and who *created* ESG rules and policies in the first place, and their goals in using ESG as the tool to achieve them. Don't just think of todays ESG policies. What happens 10 years from now if widely adapted, when the polices become much more restrictive and new unsustainable policies are created that people don't have the vision to see coming today. (*In 2004, Kofi Annan (secretary of the United Nations) asked major financial institutions to collaborate with the United Nations and the International Finance Corporation in identifying ways to integrate environmental, social, and governance concerns into capital markets.*) Do we really want the UN policing Capital markets through ESG? ESG puts Stakeholders above Shareholders and creates dilution of returns to shareholders, and it creates negative disruptions to a companies management implementing ESG policies. The money that shareholders are investing with, seeks a maximum return on that investment, and not to fund and implement ESG theoretical ideologies. (understandably so)