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Commentary

Was Tesla Key to ESG Outperformance Last Year?

Maybe, but there were other factors at play.

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In a tumultuous market, sustainable U.S. stock funds had the wind at their back in 2020, with help from their tilts toward the market's top-performing technology stocks and their avoidance of energy companies thanks to their environmentally friendly mandates.

Among the holdings that fueled strong performance in a number of environmental, social, and governance funds were Tesla (TSLA), up 743% last year, and Nvidia (NVDA), up 122%.

Katherine Lynch does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.