FYI: Two of the hottest trends in investing are working in tandem to steer billions of dollars toward companies seen as the best corporate citizens.
The first trend, sustainable investing, is nothing new. Funds focused on companies seen as doing well on environmental, social and governance issues have been attracting ever increasing dollars for years. Their pitch is that companies with better records on the environment are less likely to face big fines or possible bankruptcies, for example, making them less risky long-term investments.
The second trend, index investing, has become the default way for many conventional investors to get into the stock market. Now these funds are playing a much larger role in “ESG,” or sustainable, investing and turbocharging its growth.
Last year, investors shoveled a record $5.5 billion into sustainable funds. This year they had reached $8.9 billion by the end of June, according to Morningstar.
Regards,
Ted
http://www.telegraphherald.com/news/business/article_612190b5-71fe-58a3-bba7-bd2d17fcc934.html
