ESG (Environmental, Social, and Governance) investing has gained a lot of popularity in recent years, with investors increasingly focusing on companies that are socially responsible and environmentally conscious. While ESG investing may align with your personal values and beliefs, it is important to understand that the performance of ESG funds can vary.
Financial performance of any investment depends on a range of factors, including economic conditions, market fluctuations, and the specific investments held by the fund. Therefore, it is impossible to say with certainty whether investing in ESG funds will help you meet your financial goals.
Overall, there is no compelling evidence that ESG factors alone are a systematic source of higher returns or lower risks. But ESG considerations can be integrated into diversified portfolios that target the systematic sources of higher expected returns.
If you are considering investing in ESG funds, it is important to do your research and carefully evaluate the fund’s performance, fees, and investment strategy.
At Copper Leaf Financial we seek out companies that are making good decisions when it comes to the environment, employees, society and, of course, their profitability. Our investments integrate ESG and sustainability metrics into choosing the right fit for you. The series of Sustainability Portfolios we offer clients through our investment managers (including Dimensional Fund Advisors) have been through a rigorous screening process to ensure that you are investing in a broad array of U.S. and international, publicly-traded corporations – ones which are committed to a greener, environmentally sustainable future.
For more information about how Copper Leaf Financial approaches ESG investing for our clients please click here.
With offices in Rutland and Williston, Vermont Copper Leaf Financial can help you align your investments with your values, but that’s just the beginning. We think that your entire financial plan should be a reflection of who you are and how you think. With overall alignment throughout your plan the potential to make a difference is enormous — for yourself, your community, even the world at large. For more information about our sustainable investing options please click here or call us today at 802-878.2731 to schedule a strategy session and find out how we can help you achieve your goals.