Comments in response to the SEC’s proposal for enhanced ESG disclosure practices by funds
The Bottom Line: The proposal for enhanced ESG disclosures by funds is a step in the right direction but some modifications would strengthen the framework. The following response and recommendations were submitted on August 15, 2022 to the Securities and Exchange Commission (SEC) for consideration in response to the SEC’s Enhanced Disclosures by Certain Investment […]
Sustainable US equity funds outperform in July 2022
The Bottom Line: Sustainable actively managed US equity mutual funds and ETFs generated better average performance results in July relative to their conventional fund counterparts. Average performance of actively managed sustainable diversified US equity funds versus conventional funds: July 2022, Y-T-D and trailing 12-months to July 31, 2022Note of Explanation: Sustainable US equity funds, both […]
June stock market results bring on the worst first-half year in more than 50 years
The Bottom Line: Stocks gave up 8.3% while bonds dropped 1.57% and sustainable funds posted an average -6.21% return around a wide range of outcomes. The broad stock market dropped 8.3% and recorded the second worst monthly decline so far this year Against a backdrop of high inflation expectations, rising interest rates, slowing growth and […]
Three newly listed equity ETFs seek greenhouse gas reductions
The Bottom Line: Three new ETFs listed in June 2022 seeking to reduce greenhouse gas emissions should be evaluated based on financial and non-financial outcomes. Sustainable ETFs listed in June 2022 that invest in companies seeking to reduce CO2 emissions Fund Name/Symbol ER Assets ($M) Structure Sustainable Investing Approach Nuveen Global Net Zero Transition ETF […]
June commentary: green bond funds
The Bottom Line: Green bond fund investors tested by sharp 12-month performance declines in a difficult environment as markets priced in higher interest rate increases. June Commentary The assets of dedicated green bond funds, a segment consisting of seven active and passively managed mutual funds as well as ETFs, declined by $50.7 million in June, […]
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 […]
Investors should conduct due diligence even as SEC increases scrutiny of ESG funds
The Bottom Line: The increased SEC scrutiny of ESG funds will bolster confidence in sustainable investment products but investors should conduct their own due diligence. Introduction and summary On June 10, 2022, the Wall Street Journal reported that the Securities and Exchange Commission (SEC) was conducting a civil investigation of Goldman Sachs Asset Management (GSAM), […]
Stocks and bonds recorded gains of 0.39% and 0.27% in May
The Bottom Line: Stocks and bonds eked out gains in May while the relative performance of selected sustainable equity and bond indices trailed conventional benchmarks. The broad stock market, as measured by the S&P 500 Index, briefly traded in bear market territory but managed to eke out a narrow 0.39% gain in May The broad […]