02-08-2023, 02:26 PM
(02-08-2023, 03:21 AM)NATI BENGALS Wrote: Not something I am too familiar with.
This was a decent read.
https://corpgov.law.harvard.edu/2023/02/02/esg-investing-after-the-dol-rule-on-prudence-and-loyalty-in-selecting-plan-investments-and-exercising-shareholder-rights/
And isn't a diversified portfolio ideal?
Your linked study is an interesting read....but when they use words like "may", "could", or "should" it becomes all speculative for me and misdirects from actual facts.
There are likely people that love the idea of ESG investing...and sadly, those people will probably not experience the same gains as common sense investing.
Also, this has very little to do with diversification. Fair question though. There's tons of ways to diversify. However, if you gave me 100 bucks to invest on your behalf and i told you 20 bucks of that will net a return of 1% while the other 80 bucks will net a return of 8%, wouldn't you rather have the 8% return?
In the grand scheme of things, if someone is vigilant in their investing, this probably doesn't impact them. But most people don't even look at their 401k for decades and those will be the ones that get screwed. I personally would not invest in any fund that isn't attempting to maximize returns.
