I have always been amazed by how many fund groups seem led by their marketing departments rather than their investment departments. There is nothing wrong with wanting to invest ethically will your wealth but many fund groups mislead investors by claiming that investors could have it all, do good and outperform because ‘good’ companies will necessarily outperform ‘bad’ ones. Our analysis of various UK ethical equity funds shows their performance has been woeful, not just during the recent period when tech stocks fell, and oil stocks rose (the perfect storm for many of these funds) but going back a full five years.
The table of funds and their performance is below – we highlighted in red when the various UK ethical equity funds/ETFs underperformed the UK stock market:
