Emerging Markets Are the Next Hot Spot for Sustainable Investing
By Craig Mellow
Well-meaning investors heeding the rising call to buy “sustainable” stocks might not think of emerging markets first. Images of developing-world industry still tilt toward raw materials and belching factories paying starvation wages—not companies that will rack up high environmental, social, and governance scores. “A lot of people interested in ESG have steered away from emerging markets,” says Young Kim, a senior portfolio manager at Columbia Threadneedle Investments.
Maybe they should think again. The smokestack picture is outdated. Only one of the top 10 holdings in the Vanguard FTSE Emerging Markets exchange-traded fund deals in heavy industry.
Photo courtesy of sharonang.
Source: Barron's (link opens in a new window)
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