While the Biden-led Department of Labor (DOL) has given the green light for environmental, social, and governance (ESG) funds within 401(k) plans, I don’t get the push.
The push isn’t from many plan sponsors and I don’t see many plan participants demanding it. To me, it seems more hype than anything else.
I’m not a fan of ESG funds because you have 3 ESG funds out there and you’ll have 4 different explanations on what it means to be ESG. In addition, an ESG fund to me is no different than a sector fund and I’m not a huge fan of sector funds within a 401(k) plan.
