ESG Equity Funds in the Sell-Off

The first quarter of 2020 is the first time that many sustainable funds have been tested in a bear market. We look at how they held up compared to their peers 

Annalisa Esposito 14 April, 2020 | 9:39AM

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The first quarter of 2020 has seen markets in turmoil, with the FTSE 100 and the S&P 500 suffering their greatest drawdowns in decades. For ESG investors this is a crucial period; it is the first time that many sustainable funds will have been tested in a bear market situation. The question on many investors' minds is: how resilient have these funds proved relative to their non-sustainable peers?

According to Morningstar Direct data, two-thirds of sustainable funds have performed better than their Morningstar Category Average, a measure which covers the performance of all funds, sustainable and non-sustainable.

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About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk

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