ESG ETFs Can Act as Core Portfolio Positions

ETFs that track environmental, social and governance principles help people invest in what they believe in without sacrificing returns.

“We believe good environmental, social, and governance practices can be additive to performance,” George R. Evans, Chief Investment Officer, Equities, Portfolio Manager, OppenheimerFunds, said in a note.

In the upcoming Disruptive ETF Virtual Summit, an online virtual conference hosted by ETF Trends on Thursday, Oct. 18, 2018, OppenheimerFunds will cover the topic of ESG or environmental, social and governance investing that targets investors who are guided by various principles and seek out companies that strive to do social good.

Evans argued that ESG factors have been and are important to the basic understanding of a business and can be additive to investment performance since ESG characteristics also matter in a very real economic sense. ESG miscues can even harm a company’s ability to create economic value.

“Increasingly, companies are realizing that it is in their business interests to perform well against ESG criteria,” Evans said.

“They can interact with one another, often positively, sometimes negatively, and have important implications for the sustainability and durability of a company’s business economics,” he added.