Sustainable Investing’s Solid 2019 is Due to Strong Performance in Tech Stocks
Thursday, December 12, 2019
By Ron Day
Impact investing appears to be heading for a very good 2019. But don’t thank any gods of virtue — give credit to technology companies.
Boosted by tech-heavy portfolios, nearly half — 48% — of large-cap sustainable funds performed better than the S&P 500 through November, according to data from Morningstar. That’s compared with 26% for all of large-cap funds.
Through the end of last month, the S&P 500 had gained 25%. By comparison, Vanguard’s ESG US Stock ETF whose holdings are vetted for environmental, social and corporate governance criteria had gained 28%.
That exchange-traded fund’s top holdings? Apple, Microsoft, Amazon and Facebook.
Photo courtesy of Andrew Magill.