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Indexers take note: ethical investments should not cost a bomb

Debate rages on whether dumping sin stocks hurts or helps investment returns. But what if it doesn't make any difference either way?

A demonstration is given by mine clearers during the England cricket team's visit to Sri Lanka in November 2018
A demonstration is given by mine clearers during the England cricket team's visit to Sri Lanka in November 2018 Photo: Getty Images

What price ethical investing? For years, a debate has raged over whether selling out of “sin stocks” will harm or help your investment returns. But what if it does not make much difference either way?

There has been a steady procession of big investors announcing they are selling out of arms manufacturers, tobacco stocks and lately even polluters, such as coal miners. But few have suggested booting these companies out of the market entirely. Until now.

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