First-Quarter Volatility Doesn't Slow Sustainable Funds
Funds continue to add ESG criteria to their investment processes.
Sustainable funds turned in good performance, grew their assets, and multiplied in number in the first quarter.
Sustainable funds had an opportunity to show off their lower-volatility character during a quarter in which the S&P 500 posted its first quarterly loss since the third quarter of 2015. Driven by the strong performance of the group’s core U.S. equity funds, one third of sustainable funds finished in the top quartile of their Morningstar Categories and 55% finished in the top half. Among sustainable funds in the large-blend Morningstar Category, 20 out of 37 finished in the top quartile, 28 beat the S&P 500, and 29 finished in the category’s top half.
Jon Hale does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.