There's not much evidence that investing in ESG funds is going to lead you to outperform. The biggest holdings in those funds are often companies like Apple, Microsoft and Amazon. Most ESG funds have higher fees than a typical index fund does. And so the benefits you're getting versus just buying an index fund probably not actually that large.
Republican presidential candidates have a bone to pick with ESG investments. So does James Surowiecki, contributing writer at The Atlantic.
This episode was produced by Jon Ehrens, edited by Amina Al-Sadi, fact-checked by Laura Bullard, engineered by Michael Raphael with help from Patrick Boyd, and hosted by Sean Rameswaram.
Transcript at vox.com/todayexplained
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