AMWatch

Morningstar: ESG doesn't thrive in all market environments

Number crunching in Morningstar's global quant laboratory indicates that ESG in itself isn't a source of alpha.

"ESG funds do not target specific factor exposures, and it's difficult to maintain factor exposures unless you're really targeting them intentionally," says Michael Manetta, quantitative research manager at Morningstar in Chicago. | Photo: M. Spencer Green/AP/Ritzau Scanpix & PR / Morningstar

While ESG funds in general outperformed the broader market significantly in 2020, just 24 percent of Morningstar's ESG-screened indices beat their broad market equivalents in the first quarter of 2021.

In Europe, sustainable funds have particular stylistic tilts that largely boosted their performance in 2020 compared with conventional funds.

Read the whole article

Get 14 days free access.
No credit card required.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

Further reading

Related articles

Latest news

Jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch