ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF Education Channel
  2. Count on QQMG for Profitable ESG Companies
ETF Education Channel
Share

Count on QQMG for Profitable ESG Companies

Tom LydonJan 18, 2023
2023-01-18

As 2022 proved, markets can swiftly lose affinity for companies that aren’t profitable and when that happens, investors holdings shares of those money-losing firms usually incur punishment. That’s another way of saying, regardless of the market environment, embracing profitable companies is often a wise idea. As the Invesco ESG Nasdaq 100 ETF (QQMG B)+ proves, investors can do just that while also tapping the benefits of environmental, social, and governance (ESG) investing.

The exchange traded fund follows the Nasdaq-100 ESG Index, which is a collection of large- and mega-cap (mostly) growth stocks, many of which have been pioneers in corporate-level adoption and application of ESG virtues. The long-standing ESG reputations of many QQMG constituents ensure investors get a clean, relevant entry to ESG and one that largely steers clear of greenwashing issues.

The ESG “headstart” sported by some QQMG components is relevant today because ESG is an increasingly prominent phrase of both corporate and stakeholder lexicons.

“Where once the value of an organization was seen as a matter of how well its shareholders performed, there is now a greater emphasis on using environmental, social, and governance (ESG) measures to determine valuation. In fact, the practice of assigning an ESG rating is now standard in many major global markets,” noted Inogen Alliance. “This change has come as investors and business leaders respond to increasing pressure from governments and the public to operate with greater transparency around these three key pillars.”

QQMG is useful on another front in that ESG can potentially help investors identify lower-risk investments. On the surface, that may seem counterintuitive because growth stocks are often as somewhat risky, but in the case of QQMG, ESG can be a risk reducer.

“Rating an investment on historic and projected financial performance is a rather straightforward way to identify investment opportunities. However, finances are only one part of a bigger picture,” added Inogen Alliance.

Regarding profitability, studies indicate ESG-centric firms perform well on this metric. Perhaps it’s not a coincidence that some QQMG member firms aren’t just profitable, but are also among the most cash-rich American companies, confirming the ETF’s quality tilt.

“While it’s clear that there is risk associated with underperforming in each of the three ESG pillars, the correlation between good performance and profitability isn’t initially as clear. But the two are connected,” concluded Inogen. “An aggregated study of the findings from over 1,000 reports authored between 2015 and 2020 found that corporate ESG initiatives were strong drivers of improved financial performance

For more news, information, and analysis, visit the ETF Education Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X