Investing in Social Good Is Finally Becoming Profitable

NY Times
September 1, 2020

Impact invest­ments, which aim to pro­mote a social good or pre­vent a social ill, have sig­nif­i­cant­ly out­per­formed tra­di­tion­al bets dur­ing the coro­n­avirus pan­dem­ic. And their returns are entic­ing hes­i­tant investors to rework their portfolios.

Impact invest­ing typ­i­cal­ly focus­es on three cat­e­gories: envi­ron­men­tal, social and gov­er­nance, known as E.S.G. Returns can be tracked through var­i­ous exchange-trad­ed funds. For exam­ple, the S&P 500 tech­nol­o­gy E.T.F., for exam­ple, is up 25 per­cent this year, while the S&P 500 ener­gy E.T.F., which includes oil and gas stocks, is down 34 percent.

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