Can I beat the stock market with ESG investing? How to find the right fund for you

Sustainable investing is hot, and when Wall Street sees a trend, it wants a piece of the action.

How hot? In 2020, US SIF Foundation, which measures this type of investing, said 33% of U.S. assets under professional management use environmental, social and governance criteria when investing. That’s $17 trillion, or one in three U.S. investing dollars.

No wonder fund issuers are furiously trying to capture those dollars. Morningstar said in July that 25 funds with sustainable mandates launched in the U.S. in the second quarter of 2021, the second-highest number ever issued. As of June 30, there were 437 open-end mutual funds and exchange-traded funds dedicated to this investing style, according to the research firm.