ESG funds- who's buying

zenbrew

A previous thread got me thinking, anyone investing in ESG funds, ETFs, or in stocks (based primarily on ESG criteria)?

New Labor Department Guidance Takes Aim at ESG Investing

Back in the early 90s, the funds, I was aware of, were Pax World (which I invested in), Calvert Socially Conscious (?), & Parnassus fund. There might have been others, but I forget. Performance over several years in Pax World was so-so and I decided I would invest for return & donate to causes that I felt would make an impact instead.

In 2018, I revisited the socially conscious investing arena & found it had actually morphed into ESG funds.

As noted in a Rekenthaler column link (provided by @msf in the previous link):
The Department of Labor Attempts to Throttle ESG Investing

As I wrote last month, a key difference between ESG and its predecessor, "socially conscious investing," is that socially conscious managers implicitly admitted that their strategies might reduce their returns, while ESG investors do not. Socially conscious investors used negative screens to eliminate stocks that violated their beliefs. In contrast, ESG investors seek positive attributes, which they claim will make their companies better investments.

Though to be honest, I don't recall seeing that in the Pax World literature!

I found the Brown Advisory website to have thoughtful insights & information available & decided to invest in BIAWX at the time.

This is their 2019 Impact Report

Today BIAWX is my largest equity holding.

I would consider Parnassus funds as well. They've been consistent, around a long time, & their website also provides a ton of information in this area.

Parnassus

BIAWX & PRILX have both been competitive:

Portfolio Visualizer

I would have thought that there might be a lot of overlap in their holdings but there wasn't. Microsoft, Amazon, Google, Danaher, & Verisk Analytics make up about 20% for each but are otherwise not.

As the ESG arena flourishes, I am also skeptical in the metrics used to quantify companies & funds.

Take Tesla (TSLA), electric cars, renewable energy, & Elon Musk.

Without evidence, Musk blames ‘false positives’ for surge in coronavirus cases

Any thoughts?

Sven

I believe David Snowball invested in ESG fund. I am in the middle of researching for an appropriate candidate.

Mark

BIAWX is my largest mutual fund holding and I also hold positions in ARKK and ICLN although neither touts itself as an ESG type holding. I have other single positions in the alternative energy area so I'm at least environmentally and sustainably oriented if nothing else.

Observant1

I've owned Parnassus Core Equity Institutional (PRILX) in my HSA for several years. The fund's performance (especially during downturns), low costs (for an active fund), and experienced long-term management team influenced my investment decision. ESG characteristics were not my primary focus although I certainly appreciate companies that behave responsibly in the environmental and social realms.

WABAC

I own a small cap (BOSOX) and a mid cap (WAMFX) from Boston/Walden. I didn't have to spend 100K to get in through my Vanguard IRA. The fees are reasonable. And the yearly turnover is less than 25%.

I also own PARMX, the Parnassus mid cap.

I have looked at large caps. But I don't want one that invests in Amazon. I'm a sucker for value investing. So maybe Parnassus Endevor (PARWX) -- though I don't care for the high turnover.

I'll see where they're at in a couple of years.