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The Biggest Myth of Sustainable Investing (video)

When it comes to sustainable investing, many people mistakenly believe that it doesn’t perform well. This is perhaps the biggest myth about sustainable investing, and it’s been repeatedly debunked.

Get the facts in FundX President Janet Brown’s new video.

You’ll see how sustainable investing has actually performed. And you’ll see why today so many people are convinced that sustainable investing can help them build wealth and a better world.




Did you know that sustainable investing has the potential to do as well or better than ordinary investments? Here’s just some of the evidence:

1. Research - Decades of research has found that environmental, social and governance (ESG) practices are connected to good performance1.

2. Experience - Hundreds of institutional investors who say that sustainable investing has improved their returns2.

3. Real-world results - The MSCI KLD Social index, an index of 400 companies with strong environmental, social and governance (ESG) ratings, has performed slightly better than the S&P 500.

Full transcript:

Have you ever thought about investing to improve the world, but were concerned that your returns might suffer? Many people mistakenly believe that sustainable investing doesn’t perform well.

But guess what... There are now more than 2000 academic and industry research reports showing that sustainability practices are actually linked to good performance1.

Importantly, more than two-thirds of professional investors reported that sustainable investing had “significantly improved their returns."2

Take a look at this real world comparison: Here’s the performance of the sustainable stock index, KLD, compared to the S&P 500 index.    KLD, shown in green, was one of the first sustainable indexes. It includes 400 companies with high environmental, social and governance ratings. It’s done well.   

As you can see, it’s performed a little better than the S&P 500 for the past 26 years ….and that’s hard to do.

Clearly, sustainable investing has the potential to do as well or better than ordinary investments. That’s why so many people are turning to sustainable investing to help them build wealth and a better world.  

Thanks for watching.

1Gunnar Friede, Timo Busch & Alexander Bassen, “ESG and financial performance: aggregated evidence from more than 2000 empirical studies”, Journal of Sustainable Finance & Investment, 2015.

2State Street Global Advisors, ESG Institutional Investor Survey: “Performing for the Future” April 2017.