Not long ago, environmental, social and governance investment was so popular that some asset management companies were accused of exaggerating its ESG attributes by regulators.
Although you may not know much about ESG and "green cleaning" now, this category has not completely disappeared. However, the new leadership of Washington Special Administrative Region seemed to be ready to kick it off when ESG's investment downturn.
Common issues facing ESG investment, such as higher costs and lower performance, continue to trouble this category.
Although ESG's heyday came early and went early during Joe Biden's president, there was no reason to believe that President Donald Trump would take many measures to revive and increase the opportunity to such a category.
"Under the leadership of Donald Trump, the future of ESG's investment is dim," said Sarah Maitre, the founder of Camriel Advisors, Camata, California.
"In recent years, we have witnessed the large amount of capital of ESG Fund. The investment of these funds has slowed down during Trump's first term," she added. "Today's investors don't pay much attention to social -driven investment, especially because the return rate failed to keep up with the pace of the broader market."
Although ESG investment can be subdivided and located in various ways, ETF.com analysis with MSCI ESG quality score shows that some ESG ETFs with the highest rating have not achieved performance.
For example, Nuveen ESG International developed market ETF (NUDM)The fund was among the best in the screening ETF list, with 31 basis points, which rose only 5.5%last year.
At the same time, the fund with the second highest score Nyli Clean Marine ETF (Ocen)Charged 45 basis points, decreased by 7.4%last year.
This background caused a lot of doubt, but there are still many ESG believers in the financial planning community.
Alvin Carlos, executive partner of the VISTRICT Capital Management, said: "The business DEI event will definitely be attacked, but ESG investment will survive under Trump's leadership."
He added: "Investors who hope that funds are consistent with values will continue to use ESG funds." "We still use ESG ETFs for customers who are full of enthusiasm for specific problems."
Brett Croft, the owner of Croft Financial Planning Croft Financial Planning, New Hampshi, regards ESG as a periodic strategy, which can rise with the changes in the large market model.
He said: "Due to the growth of large -cap stocks, especially the growth of technology companies, many ESG funds have performed well in the past 10 years." He quoted the 10 -year average return rate of 12.7% of these funds. Ishares MSCI KLD 400 Society ETF (DSI)Only a few base points behind SPDR S & P 500 ETF Trust (SPY) During the same period.
Crovt said: "During Trump's time as president, the growth of technology stocks and large -cap stocks should continue to perform well." "Just look at the person sitting behind the president's inauguration ceremony," he knows The Tao refers to Elon Musk.
Noah Damsky, the head of the Los Angeles Marina Wealth Advisors, believes that paying more low -key attention to ESG may eventually be a good thing for investors and such categories.
He said: "This strategy has not been discussed by the media as in the past few years. This is a good thing, because ESG no longer pays so much attention to clicking bait, but more attention to the fundamentals." ESG investors do exist, and these strategies have a place, but the market part of them may be narrower than previous expectations. "
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