Friday, February 16, 2018

Sustainable investment funds outperformed during the correction

Decades ago, people thought you’d have to give up returns to buy responsible companies. But study after study is showing that sustainable investing typically does as well or better. If you are trying to make the world better, why would you invest in companies making the world worse? Here’s a report about how sustainable funds performed in the recent correction.

In the first nine days of the month—a period over which the S&P fell 7.2%—two-thirds of all sustainable funds available in the U.S. finished in the top half of their respective categories. For equity funds, “65% outperformed their peers, with more than twice as many finishing in their category’s top quartile than in the bottom quartile,” wrote Jon Hale, head of sustainability research at Morningstar. Per his data, 30% of sustainable stock funds finished in the top quartile of their category, compared with the 14% that ended in their group’s bottom quartile.

‘Sustainable’ funds outperformed the broad market in the recent correction - MarketWatch

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