Should you invest in ESG funds?

Choosing ESG funds can help align your investments with your values and support companies that prioritize sustainability, social responsibility and good governance. However, it’s important to note that ESG investing does not guarantee superior financial returns. How Do ESG Funds Work?

What is ESG investing?

“At its core, ESG investing is about influencing positive changes in society by being a better investor,” says Hank Smith, head of investment strategy at The Haverford Trust Company. According to Smith, ESG investing assumes that there are certain environmental, social and corporate governance factors that impact a company’s overall performance.

Are ESG funds a 'woke' investment?

Commissions do not affect our editors' opinions or evaluations. While some critics condemn ESG funds as “woke” investing, regular investors’ appetites remain strong for these funds, which consider the environmental, social and governance factors of a portfolio’s companies along with the companies’ financial fundamentals.