What is ESG investing? What are ESG funds?

May 25, 2022
|By Eka Marketing

ESG investing is making ‘sustainable’ investments considering the environment, social, and economy. It stems from the growing assumption that the financial performance of enterprises is interlinked and affected by environmental and social factors.

ESG funds are portfolios where asset allocation includes shares and bonds of companies that are evaluated based on their environmental, social, and governance performance. ESG funds came into prominence recently due to the coronavirus pandemic, which led investors to invest in funds to increase resilience amidst heightened market volatility and uncertainty.

Some of the preferred ESG funds are:

  • 1919 Socially Responsive Balanced A (SSIAX)
  • Pax Large Cap Fund Institutional (PXLIX)
  • Thornburg Better World International I (TBWIX)
  • Parnassus Core Equity Investor (PRBLX)
  • iShares MSCI USA ESG Select ETF (SUSA)