Exchange traded funds espousing the virtues of environmental, social and governance (ESG) investing principles continue proliferating and some observers are forecasting major growth for this fund segment over the next decade.
The Global X Conscious Companies ETF (NasdaqGM: KRMA) is an example of an ETF poised to benefit from increasing adoption of ESG strategies.
ESG, which is just over two years old, tries to reflect the performance of the Concinnity Conscious Companies Index, which tracks companies that achieve financial performance in a sustainable and responsible manner and exhibit positive Environmental, Social and Corporate Governance (ESG) characteristics. KRMA has a 0.43% expense ratio.
Arguably the biggest question investors have regarding ESG funds is whether or not these strategies can outperform traditional benchmarks. KRMA’s performance since inception indicates that desired out-performance can be a reality.