Do Sustainable Funds Beat their Rivals?

Morningstar has analysed the performance of 4,900 funds to find out whether sustainable funds can beat their traditional counterparts over the long-term 

Hortense Bioy, CFA 16 June, 2020 | 10:06AM

green funds

Despite the increased popularity of sustainable funds, concerns remain about a potential performance trade-off. A growing body of research shows that sustainable investing has a positive effect on investment performance, but other research shows, as well, that there isn’t a clear link between firms’ environmental, social and governance attributes and performance.

To find out how these funds stack up, Morningstar has analysed the performance of sustainable funds in seven Morningstar Categories, comparing average returns, success rates, and survivorship rates over 10 years for sustainable funds versus traditional funds.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Hortense Bioy, CFA

Hortense Bioy, CFA  is director of passive funds and sustainability research in Europe for Morningstar

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