ESG funds are not more expensive than other actively-managed funds

Not Expensive Thumbnail

– A study finds that ESG funds, on average, charge less than other actively managed funds.
– However, it remains to be seen whether the bulk of ESG funds causes real-world change.

Here is a note from Florian Heeb:

  • Are ESG funds more expensive? The answer seems:
  • A study by Morningstar finds that, on average, actively managed ESG-funds charge less.
  • Is this a free lunch (from an impact perspective)? I think that depends heavily on the question of whether the bulk of ESG-products causes real-world change. There are certainly a lot of open questions to that end.
  • And here is our paper looking at the current evidence on how funds can have an impact.