How COVID-19 Has Redefined What Investors Want
The coronavirus pandemic has changed the way we work, play, and invest. Working from home is the new normal. Outdoor walks, at a safe distance from family and friends, have replaced sporting events, happy hours, and backyard barbecues. And investing has evolved, too, as more investors demonstrate an increased appetite for companies with good records on environmental, social, and governance (ESG) practices.
According to Morningstar, more than $10 billion, net, flowed into 314 different open-end and exchange-traded ESG funds in the first quarter of 2020. That's an increase of more than 20% relative to the fourth quarter of 2019. The increase alone is impressive, but the timing is even more so. It was also during the first quarter of this year that the S&P 500 lost about 30% of its value. The average ESG fund, however, fell only 12.2%, according to a Bloomberg analysis.
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Source Fool.com
