Putting ESG-Marketed Funds Under the Microscope and Examining Their Impact on Investor Portfolios

In this research, we investigated how "greenwashing" is driving interest in ESG funds, and whether those with better ESG marketing or higher ESG scores are winning the asset flows. We also examined the impact of substituting ESG-focused funds into a typical investor portfolio to see what impact they had on performance, risk, and of course, ESG scores.

Our findings aim to provide data and talking points in light of new SEC rules set to take effect, which entail stricter reporting guidelines for ESG investment strategies.