No longer reserved for niche investment strategies, Environmental, Social, and Governance (ESG) principles are on track to become a major consideration for investors as climate change, geopolitics, and energy usage become increasingly important to companies across sectors. PricewaterhouseCoopers has predicted that ESG will continue to be a dominant feature in exchange-traded fund (ETF) launches. ESG ETFs allow investors to focus on companies prioritizing sustainability and other ESG goals without having to manage and oversee each firm's compliance with these principles.
While ESG is an important consideration for many investors, an ESG investment is compelling only if it can also deliver outstanding performance. Fortunately, there are already a number of ETFs focused on ESG ideals poised to continue beating the market heading into the new year.
