ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • 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
    • 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 VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Increasing Demand for ESG ETFs as a Core Holding
News
Share

Increasing Demand for ESG ETFs as a Core Holding

Max ChenMar 09, 2020
2020-03-09

Socially responsible exchange traded fund strategies that incorporate environmental, social, and governance principles are beginning to gain traction with the investment community.

“We’re starting to see that pick-up, and advisors and clients are accepting that incorporating ESG principles into your investments doesn’t take away from returns. We’re also seeing a number of these products hit key milestones – so, being in the market for three years or five years – and people see that the performance and the risk characteristics are in line if not better than non-ESG products,” Jordan Farris, Head of ETFs, Nuveen, said at the Inside ETFs conference.

For example, investors can fill out their equity portfolio with U.S. ESG equity-related ETFs, such as the Nuveen ESG Large-Cap Value ETF (NULV B), Nuveen ESG Large-Cap Growth ETF (NULG A-), Nuveen ESG Mid-Cap Value ETF (NUMV ), Nuveen ESG Mid-Cap Growth ETF (NUMG B-) and Nuveen ESG Small-Cap ETF (NUSC B), which screen companies of various market capitalization and asset categories for environmental, social and governance principles.

The Nuveen ESG International Developed Markets Equity ETF (NUDM A-) and Nuveen ESG Emerging Markets Equity ETF (NUEM B) also align investors’ international equity investments with their values.

At Nuveen, the money manager employs several other ESG criteria to better target companies that exhibit socially responsible characteristics. Specifically, Nuveen applies an ESG rating to capture an issuer’s performance on crucial ESG risks relative to peers, a controversy score that captures an issuer’s exposure and response to event-driven controversies, a controversial business investment component that captures an issuer’s activity in industries that may cause significant social harm and a low-carbon criteria that captures the carbon intensity of an issuer based on involvement in specific industries.

Additionally, the three ESG factors cover three separate broad categories. Environmental refers to climate change, greenhouse gas emissions, resource depletion, including water, waste and pollution, deforestation. The social aspect covers working conditions, including child labor, community and indigenous populations, operations in conflict zones, health and safety, employee relations, and diversity. Lastly, the governance factor is based on executive pay, bribery, and corruption, political lobbying and donations, board diversity and structure, tax structure.

The ESG factors are an all-inclusive categorization, so investors should not see this as something like an exclusionary based investment approach. Furthermore, the responsible investment and ESG-related investment strategy is not indented to sacrifice performance or lower returns for the sake of achieving their goals. In essence, ESG investments have even shown to generate improved risk-adjusted returns over time.

Watch Jordan Farris Get Into ESG:


Content continues below advertisement

This article originally appeared on ETFTrends.com.

» Popular Pages

  • Tickers
  • Articles

Mar 28

2Q 2023 Market Insights - The Soft Landing Facade

Mar 28

RELX Uses Free Cash Flow to Acquire 9 Companies

Mar 28

As Spring Arrives, Bank on an ESG Rebound in IRBA

Mar 28

Investors Turn to Fixed Income Amid Uncertainty

Mar 28

ETF Prime: Dave Nadig Talks Credit Suisse ETNs and More

Mar 28

In March, How is February’s Top Factor Working?

Mar 28

3 Low-Fee Single Nation ETFs for Diversification

Mar 28

Equal Weight ETFs Add Sector Tilts

Mar 28

Fed and Market Expectations Diverge

Mar 28

BondBloxx Treasury ETFs to Implement Your Views

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

VGT

Vanguard Information...

SMH

VanEck Semiconductor ETF

XLK

Technology Select Sector SPDR...

VTI

Vanguard Total Stock Market...

SOXX

iShares Semiconductor ETF

BLOK

Amplify Transformational Data...

META

Roundhill Ball Metaverse ETF


Content continues below advertisement

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