The Failure of ESG Investing: Branding or Altruism?

Investing in ESG funds has been a disappointment. ESG scores increase each year, but is it because companies are improving or standards are lowering? ESG returns are average, similar to traditional indexes. The top ESG companies are also the most valuable. Investors pay higher fees for ESG ETFs, but even that is considered low by ESG standards. It's all about branding and charging more. As a result, the ESG movement is losing steam with $14 billion withdrawn from Sustainable Funds this year.