5min chapter

Plain English cover image

The illusion of ESG investing | Learn the expression ‘welcome with open arms’

Plain English

CHAPTER

ESG Investing - Why Do Fund Managers Charge So Much?

The ESG investing industry is booming with many of the big investment managers, hawking ESG index funds. The SEC sued BNY Mellon for creating an ESG fund and then proceeding to invest in individual stocks without always even taking ESG metrics into consideration. Recent academic studies have suggested that top ESG funds not only make a lower return than non ESG funds, but they're also not terribly effective at improving companies' track records. It's almost like the worst of both worlds.

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