Advisors and investors are expected to continue considering exchange traded funds adhering to environmental, social and governance (ESG) investing principles. Likewise, ETF issuers are likely to continue introducing ESG products.
An established member of the ESG ETF space to consider is the Oppenheimer ESG Revenue ETF (NYSEArca: ESGL). ESG investments try to deliver returns while monitoring the long-term impact of a company’s business practices on society, the environment and performance of the business.
Most ESG funds simply employ virtuous investing principles, but Oppenheimer goes further by employing its revenue-weighted methodology, which can help investors avoid overvalued sectors and stocks.
ESGL “provides access to the top 50% of securities in the S&P 500 Index by ESG score, excluding those with a detrimental score for controversies, and is weighted by top line revenue instead of market capitalization,” according to Oppenheimer.
ESGL, which debuted in October 2016, holds 234 stocks and has over $25 million in assets under management. The ETF tracks the OFI Revenue Weighted ESG Index.