Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
The Inflation Mega-trend and UK House Prices - Housing Market Analysis Trend Forecast 2022 to 2025 - 5th July 22
Gold Price Summer Seasonal Doldrums - 5th July 22
Tame Budgies Having Fun on a Grape Vine - UK Parakeet Easy Training - 5th July 22
Is the US Yield Curve Inversion Broken? - 3rd July 22
New Signs Economic Turmoil Will Prompt Fed to Lose Its Nerve - 3rd July 22
Stagflation With Powell Could Make Gold Price Happy - 3rd July 22
UK Housing Market Analysis, Trend Forecast 2022 to 2025 - Part 2 - 30th June 22
Stock Market Turning the Screws - 30th June 22
How to Ignore Stocks (and why you should) - 30th June 22
Top Tips For Getting The Correct Insurance Option For Your Needs - 30th June 22
Central Banks Plan To Buy More Gold In 2022 - 30th June 22
AI Tech Stock PORTFOLIO NAME OF THE GAME - 29th June 22
Rebounding Crude Oil Gets Far Away from the Bearish Side - 29th June 22
UK House Prices - Lets Get Jiggy With UK INTEREST RATES - 28th June 22
This “Bizarre” Chart is Wrecking the Stock Market - 28th June 22
Recession Question Answered - 28th June 22
Technical Analysis: Why You Should Expect a Popularity Surge - 28th June 22
Have US Bonds Bottomed? - 27th June 22
Gold Junior Miners: A Bearish Push Is Coming to Move Them Lower - 27th June 22
Stock Market Watching Out - 27th June 22
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Should you include ESG investments in your portfolio?

InvestorEducation / Learning to Invest Sep 30, 2021 - 08:14 PM GMT

By: Sumeet_Manhas


The coronavirus pandemic has undeniably altered society in many immeasurable ways. It’s even had an impact on the world of investment. Indeed, it proved to be a major turning point for ESG investing as the pandemic not only altered the way we interact with one another but societal values too.

The experts at Saunderson House recently ran a study on financial well-being and put a greater focus on responsible investment. Their results reveal that, from a moral perspective, there is a major  appetite right now for ESG or responsible investing. But what is ESG and why should you include them in your investment portfolio?

What is ESG

ESG investing refers to (environmental, social and governance) is a set of criteria that company’s or individuals look for when choosing where to invest. In many ways, ESG investing is very similar to ethical investing, though investors might be choosing to invest not only on moral grounds but because there is less risk of a fallout as a result of operating practices. Any businesses that consider their impact on the environment, social factors or the company’s leadership structure could be considered ESG investments.
Investing in sustainability

More than half of all wealth managers are planning ESGH integration according to a survey by bfinance. It’s easy to see why. In a post-COVID world, investors are warier about where they put their money because the pandemic proved beyond a shadow of a doubt that things can fall apart in a split second.

People are also starting to realise just how important sustainability is, with responsible investments up dramatically in recent years. This is particularly true in younger investors, with 83% of those between the ages of 18 and 34 interested in the sector. This is perhaps due not only to COVID but the racial injustice that was exposed in 2020, leading to a greater overall focus on societal challenges.

Sustainable investments are smart investments

Data from global research agency Morningstar reveals that, whereas ESG investments were once seen as something of a fringe concern, it’s now becoming mainstream. Vanguard is one of the largest fund managers in the world and it launched two ethical index funds last year. The data from Morningstar also found that the majority of sustainable funds actually beat returns on all non-sustainable investments, often over multiple times.

Indeed, the average return for an ESG investment is around 6.9% a year, which is 0.6% higher than conventional investment funds. By their very nature, sustainable funds also last longer than their peers so it’s an investment that should continue to offer rewards for many years in the future. So, ESG investments might not only be more ethical but better investments overall!

By Sumeet Manhas

© 2021 Copyright Sumeet Manhas - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in