ESG Index Update: -3.7% MTD; -11.6% YTD

As mentioned in my previous article, ESG investing means that investments are made only in the businesses and their financial securities which are compliant with environmental, social, and governance norms for doing their business and conducting operations.

ESG investing is not just about aligning your financial goals with your values. Studies show that ESG investing can reduce volatility and improve returns. In fact, ESG funds did better than the broader market during the stock volatility surrounding the coronavirus pandemic.

Of the 126 ETFs in the ESG category, 50 have been ranked as per their ESG Risk Ratings by Morningstar with 29 receiving ESG scores of 7.2 (AA or AAA) or more. Only 10, however, are consistent out-performers and, as such, make up the constituents in the munKNEE ESG ETF Index.

This article identifies the 10 ESG ETFs whose performances are consistently head and shoulders above their peers and make up the constituents in our ESG ETF Index.

The munKNEE ESG ETFs Index

Below is how the constituents in the index performed in the past 2 weeks (i.e. since April 29th) and YTD with their ESG scores:

  1. Vanguard Value ETF (VTV): -2.7% so far in June; -6.4% YTD; ESG Score: 7.2
  2. Vanguard Russell 1000 Value ETF (VONV);  -3.1%; -9.4% YTD; ESG Score: 7.4
  3. Vanguard S&P 500 Value ETF (VOOV): -3.3%; -8.2% YTD; ESG Score: 7.4
  4. JPMorgan Diversified Return ETF (JPUS): -3.3%; -9.2% YTD; ESG Score: 7.9
  5. JPMorgan U.S. Value Factor ETF (JVAL): -3.3%; -12.0% YTD; ESG Score: 8.4
  6. SPDR S&P 500 Value ETF (SPYV): -3.3%; -8.2% YTD; ESG Score: 7.5
  7. Invesco Russell Top 200 ETF (EQWL): -3.5%; -13.9% YTD; ESG Score: 7.5
  8. iShares Core U.S. Value ETF (IUSV): -3.6%; -8.6%YTD; ESG Score: 7.7
  9. Vanguard Health Care ETF (VHT): -4.0%; -13.4% YTD; ESG Score: 7.5
  10. S&P Health Care ETF (RYH): -4.1%; -15.9% YTD; ESG Score: 7.2

The above 10 ESG ETFs have gone DOWN 3.7% in the past 2 weeks and are now -11.6% YTD, on average, and have an average ESG score of 7.45.

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