If you look through the factsheets of index and actively managed funds, you immediately realise that sustainable funds charge higher average fees. In the US, the average index fund with an ESG mandate has an expense ratio of some 10-20bps above traditional index funds. Given that most index funds in the US charge less than 20bps, this premium implies some 50% more revenues for the providers of sustainable index funds.
How much is a sustainability label worth?
How much is a sustainability label worth?
How much is a sustainability label worth?
If you look through the factsheets of index and actively managed funds, you immediately realise that sustainable funds charge higher average fees. In the US, the average index fund with an ESG mandate has an expense ratio of some 10-20bps above traditional index funds. Given that most index funds in the US charge less than 20bps, this premium implies some 50% more revenues for the providers of sustainable index funds.