Several investment funds that adhere to environmental, social, and governance (ESG) policies have performed worse than the S&P 500 index this year, with the underperformance of such funds potentially set to continue through 2023 as well.
A Bloomberg analysis of the 10 largest ESG funds by assets reveals that they have all registered double-digit losses. While the S&P 500 declined by 14.8 percent as of Dec. 5, eight out of these ESG funds have declined even more. Topping the list of losers was Brown Advisory Sustainable Growth Fund which fell by 28.1 percent, which was almost double the loss of the S&P 500. As of end of October, two-fifths of the fund’s assets were in internet, software, and semiconductor stocks.
