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Sustainability Matters

Sustainable Funds at Midyear

Strong flows, good performance, more funds considering ESG and some intriguing new entrants.

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Taking stock of sustainable funds at midyear, here are some highlights: Sustainable funds experienced record flows in the first half of 2019 alongside generally strong relative performance. Conventional funds continued to add environmental, social, and governance criteria to their investment process. While the pace of new launches has slowed, there are several intriguing new entrants to the sustainable funds group.

Flows. In my last piece, I wrote about flows into U.S. sustainable open-end and exchange-traded funds so far this year being on pace to surpass the calendar-year record set last year. Sustainable funds attracted an estimated $8.9 billion in net flows in the first half of 2019, surpassing their $5.5 billion in flows for all of 2018.

Jon Hale does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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