As the investment community grows and matures, more investors are beginning to branch out from traditional strategies and look into alternative options like exchange traded funds that track environmental, social and governance principles.
For instance, OppenheimerFunds offers some ESG-related ETF strategies, including the Oppenheimer ESG Revenue ETF (NYSEArca: ESGL) and Oppenheimer Global ESG Revenue ETF (NYSEArca: ESGF).
“We have a tremendous passion and conviction around the space,” Sharon French, Head of Beta Solutions at OppenheimerFunds, said at the Inside ETFs 2018 conference. “Environmental and social investing is not new – it’s about 200 years old. The education and the sort of mainstreaming of the this concept is pretty new.”
ESGL targets broad U.S. large-caps through the S&P 500 but screens through Sustainalyics’ proprietary scoring system that focuses on those with positive ESG attributes and employs a revenue-weighted methodology.