As ESG investing becomes more and more popular, investors are thinking about switching their benchmarks from a traditional index like the MSCI country indices or the FTSE indices to an ESG benchmark calculated by these companies or other providers. Alternatively, they may keep their benchmark indices in place but instead, invest in an ETF or fund that tracks an ESG benchmark. In both cases, the risk is that by investing with sustainability criteria in mind, the portfolio may start to underperform, especially if sectors like energy and mining start to rally.
Standard or ESG benchmark?
Standard or ESG benchmark?
Standard or ESG benchmark?
As ESG investing becomes more and more popular, investors are thinking about switching their benchmarks from a traditional index like the MSCI country indices or the FTSE indices to an ESG benchmark calculated by these companies or other providers. Alternatively, they may keep their benchmark indices in place but instead, invest in an ETF or fund that tracks an ESG benchmark. In both cases, the risk is that by investing with sustainability criteria in mind, the portfolio may start to underperform, especially if sectors like energy and mining start to rally.