You Want to Invest Responsibly? Wall Street Smells Opportunity!, Gareth Jones

In the first quarter of 2021, exchange-traded ESG portfolios listed in the U.S. took in $14.8 billion in new money. More than half their total assets of $86.2 billion have flowed in since the beginning of 2020. Last year, sustainable portfolios in the U.S. took in nearly one-fourth of all new money across ETFs and mutual funds alike.

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The push for ESG comes partly from investors who want to use their money to pressure companies into certain behavior. At least as big a push comes from investment managers. With market-matching index funds beating traditional stock pickers, it’s become harder to keep charging high fees. Asset managers are rescuing underperforming vehicles from oblivion by converting them to a sustainable approach. One in six ESG funds has been retrofitted out of a pre-existing, often struggling strategy, according to Morningstar; last year, 25 portfolios became born again as sustainable funds. Investors, it seems, are more likely to put up with low returns and high fees if you enable them to feel righteous.

https://www.wsj.com/articles/you-want-to-invest-responsibly-wall-street-smells-opportunity-11618586074?mod=markets_lead_pos5