Head of Exchange Traded Products Nick Cherney discusses the growing interest in environmental, social and governance (ESG) investing and why he believes active management coupled with the efficiency of the exchange-traded fund (ETF) structure can help investors build sustainable portfolios.
- In recent years, we have seen accelerating interest among investors seeking to align their financial objectives with their views on sustainability.
- However, we feel there is currently a gap in the market for sustainable ETFs that incorporate the more detailed level of analysis that active management can provide.
- Historically, the concern has been that focusing on ESG meant sacrificing returns. But we believe it is possible to deliver best-in-class risk-adjusted returns while also meeting a high standard in terms of sustainability.