Skip to Content
Sustainability Matters

Sustainable Index Funds Produce Strong Gains in 2021

Performance bolsters the case that ESG ratings and metrics can deliver competitive returns.

Mentioned: , , , , ,

ESG index funds continued to deliver strong returns in 2021, both in absolute and relative terms. Last year's performance adds to the evidence that investments that use environmental, social, and governance ratings and metrics to select securities and structure portfolios can deliver competitive returns. This is good news for anyone interested in sustainable investing. It is especially welcome news for those financial advisors who have been hesitant to address their clients' sustainability concerns because they do not want to steer them into underperforming investments. 

Jon Hale does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.