More Evidence of Solid Performance From Sustainable Funds
Investors in funds that incorporate environmental, social, and governance factors into their process appear not to suffer a performance penalty.
The most frequently asked questions about sustainable investing still have to do with performance. In theory, when investors limit their investment universe for moral or ethical reasons, they risk underperformance because they are not selecting the most efficient set of investments.
That's perfectly normal, as Meir Statman argues in his recent book, "Finance for Normal People: How Investors and Markets Behave." Individual investors--aka "normal people" in Statman's terms--choose less-efficient portfolios for all kinds of reasons.