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ESG reminds me of Target Date funds, for a reason

ESG

Environmental, Social, and Corporate Governance (ESG) funds are a hot potato item as the Department of Labor (DOL) is giving a pushback because their current belief is that returns on investment mean most.

 

The problem I have with ESG funds is the trouble I had with Target Date funds, there is no set criteria or model that these ESG funds meet, just like Target Date funds. We all know that a 2025 Target Date fund will have varying equity exposure as we move from fund family to fund family. ESG funds stand for something, but everyone has a different opinion of what that means in terms of actual investments.

 

ESG is always the most frequently asked addition to a fund lineup, but is it more branding than an appropriate plan investment? Just my question, no right answer.

 

 

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