Is Now a Good Time to Build an ESG Portfolio?
The financial community has been abuzz about ESG funds, which have shown a surprising level of strength in recent years. And now, with a President-elect who supports sustainability waiting in the wings, the time could be right to build out a broader ESG portfolio -- as long as you understand the risks.
It wasn't too long ago that you didn't have the option to build a well-diversified ESG portfolio. You might have held a clean energy fund out of principle, but you also had to own positions that rated lower on ESG factors just to have a sufficient level of diversification.
Not so today. The ESG fund space has grown dramatically in recent years to the point that it may check all the boxes on your portfolio's target asset allocations -- including emerging markets, international developed markets, domestic large and mid caps, real estate, and domestic and international fixed income.
Source Fool.com
