ESGU: Dip Your Toes Into ESG Investing Without Sacrificing Results


  • Many investors aren't ready to concede returns just to avoid so-called "morally bankrupt" stocks, but with ESGU, you won't have to, as it tracks the MSCI USA Index almost perfectly.
  • MSCI's optimization constraints ensure this, and the majority of excluded stocks have negligible weightings in the S&P 500.
  • ESGU's popularity is a reflection of this; it has assets under management of $22 billion with annual fees of just 0.15% and is an appropriate substitute for S&P 500 funds.

photo on ESG (Environmental, Social, and Corporate Governance) theme. wooden cubes with the acronym "ESG", and sticky notes, on the background of skeleton magnolia leaf
Ivan Martynov/iStock via Getty Images

Investment Thesis

Like dividend investing, value investing, and growth investing, ESG investing can be done on a spectrum. You can invest in stringent ESG funds or try out some "ESG-lite" funds that put a bit of emphasis on environmental, social, and governance factors, but

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