Asset Management

Sustainable funds outperformed broader market in recent downturn

Funds which tilt their portfolios based on ESG criteria tended to perform better in the equity market volatility earlier this month

Sustainable funds outperformed broader market in recent downturn

Being green may have prevented some red for US stock investors in the recent downturn, MarketWatch reports.

So-called sustainable funds — which tilt an equity portfolio toward companies with high scores on environment, social and corporate governance (ESG) issues — tended to perform better in the equity market volatility seen earlier this month, according to a Morningstar analysis.

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