BlackRock Admits Conservatives Are Eating Its Lunch Over ESG (townhall.com)
Get Woke, Go Broke: CEO's ESG Activism Costing BlackRock Dearly – RedState
There's a couple of issues with ESG investing. The first is that you're investing based upon politics vs generally making money. Investing in businesses that have a Global Warming agenda or DEI garbage is great if that's your thing. For those that want returns instead of rewarding woke companies this can be a problem. If you don't have a choice in the matter then it becomes a bit more problematic since ESG heavy funds tend to perform worse than the average.
ESG investment funds have a lower rate of return than non Left leaning political investments. Considering that most people save their entire lives for retirement, using ESG funds is a bad practice. Imagine that your investment is only growing at 3% per year vs the average 7% return that the stock market normally provides. The income at retirement becomes grossly insufficient for many.
Use the tool provided below to compare the same investment amount with a 3.5% return vs a 7% return.
If someone decides that they prefer ESG investments strategies and are willing to give up potential returns then that's their business. Rock on. However, if a state or corporation decides to invest pension funds in such schemes then that becomes a problem when the pension funding falls short.
To each his own.
Are DEI And ESG Finally Going MIA? – Issues & Insights (issuesinsights.com)
"In a report for the Pacific Research Institute, economist Wayne Winegarden looked at the 18 ESG funds with a 10-year track record and found their returns on investment are 44% smaller than returns from an S&P 500 index fund."
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