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Chart of the Week – July 18, 2022

putnam retirement ready funds

The Bottom Line:  Putnam Investments announces rebranding of its RetirementReady funds effective later this year or early 2023, thereby expanding sustainable target date fund options. Assets of sustainable target date funds:  2019 – June 2022Note of Explanation:  All TDFs exclude Putnam’s RetirementReady funds.  Data sources:  Morningstar Direct and Sustainable Research and Analysis LLC. Observations: Putnam […]

Chart of the Week- July 11, 2022

The Bottom Line:  Expense ratios levied by active and passively managed sustainable diversified US equity funds are competitive, but size matters for index tracking funds. Expense ratio comparisons for active and passively managed diversified US equity ETFs and distribution of expense ratios for sustainable ETFs Expense ratio comparisons                […]

Chart of the Week- July 4, 2022

The Bottom Line:  Sentiment around ESG is taking a negative turn and based on various recent developments and actions, ESG is also becoming more politicized. States that have adopted anti ESG legislation, may be considering them or are leaning in that direction Observations: Sentiment around ESG has taken a negative turn and ESG is becoming […]

Chart of the Week- June 27, 2022

The Bottom Line:  Nine of the top 10 fixed income ESG ETFs would likely be classified as ESG-Focused funds under the SEC’s proposed rule amendments. Top 10 sustainable fixed income ETFs and their expected SEC ESG-related classifications based on currently proposed rule amendments covering ESG funds Integration Fund ESG-Focused Fund Impact Fund None iShares ESG […]

Chart of the Week- June 20, 2022

The Bottom Line:  The nine sustainable index ETFs launched so far this year indicate lower average expense ratios relative to funds listed prior to 2022. Average expense ratios of exchange traded funds launched prior to 2022 and 2022 Y-T-DNotes of Explanation:  Expense ratios = arithmetic average, covering a total of 232 ETFs.  Source:  Morningstar Direct […]

Chart of the Week-June 13, 2022

The Bottom Line:  Funds focused on investments based on their alignment with the UN’s SDGs are limited and they don’t address SDG contributions over time. Funds focused on alignment with UN Sustainable Development Goals (SDGs) Fund Name/Symbol AUM (M$) Expense Ratio (%) Description Impact Shares Sustainable Development Goals Global Equity ETF (SDGA) 5.3 0.75 An […]

Chart of the Week- June 6, 2022

The Bottom Line:  The segment of sustainable municipal ETFs expanded in May and turned in positive monthly performance results for the first time in 2022. Sustainable municipal ETFs:  Average total return performance January 1, 2022 – May 31, 2022 Notes of Explanation:  The segment, identified by Sustainable Research and Analysis, consists of five funds:  Franklin […]

Chart of the Week- May 30, 2022

The Bottom Line:  S&P removed Tesla Inc. from the S&P 500 ESG Index in May but limited transparency regarding the decision contributes to ESG confusion. S&P 500 ESG Index top 10 holdings prior to and following removal of Tesla Inc. (TSLA)Source:  S&P Down Jones reports and various index fund holdings reports. Percentages as of May […]

Research

Research and analysis to keep sustainable investors up to-date on a broad range of topics that include trends and developments in sustainable investing and sustainable finance, regulatory updates, performance results and considerations, investing through index funds and actively managed portfolios, asset allocation updates, expenses, ESG ratings and data, company and product news, green, social and sustainable bonds, green bond funds as well as reporting and disclosure practices, to name just a few.

A continuously updated Funds Directory is also available to investors.  This is intended to become a comprehensive listing of sustainable mutual funds, ETFs and other investment products along with a description of their sustainable investing approaches as set out in fund prospectuses and related regulatory filings.

Getting started

Many questions have surfaced in recent years regarding sustainable and ESG investing.  Here, investors and financial intermediaries will find materials that describe the various approaches to sustainable investing and their implementation.  While sustainable investing approaches vary and they have thus far defied universally accepted definitions, many practitioners agree that they fall into the following broad categories:  Values-based investing, investing via exclusions, impact investing, thematic investments and ESG integration.  In conjunction with each of these approaches, investors may also adopt various issuer engagement procedures and proxy voting practices.  That said, sustainable investing approaches will continue to evolve.

In addition to periodic updates regarding sustainable investing and how this form of investing is evolving, investors and financial intermediaries interested in implementing a sustainable investing approach will also find source materials that cover basic investing themes as well as asset allocation tactics.

Inesting ideas

Thoughts and ideas targeting sustainable investing strategies executed through various registered and non-registered sustainable investment funds and products such as mutual funds, Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), closed-end funds, Real Estate Investment Trusts (REITs) and Unit Investment Trusts (UITs). Coverage extends to investment management firms as well as fund groups. 

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