Navigating ESG Investing

ESG (environmental, social, and governance) funds may attract investors with promises of higher returns, lower risks, real-world impact, or the opportunity to align their portfolios with their personal values.

Higher returns and lower risks relate to the impact of ESG on the investor’s own portfolio. Values alignment and real-world impact relate to the investor’s nonfinancial goals. Which promises a fund hopes to achieve, and assumptions about their validity, can lead to very different investment strategies. How should investors evaluate these promises?

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Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.