Commentary The underperformance of the latest form of “woke activism” in finance, called Environmental, social, and corporate governance (ESG), will be the strategy’s eventual undoing. We have discussed the many problems with ESG investing in previous posts. The Great Wall Street Money Heist Wall Street Wins Again As ESG Infiltrates Retirement Plans In those previous articles, we primarily focused on the excessive expense ratios charged for funds that are essentially duplicates of low-cost benchmark indexes. To wit: With ESG now all the rage, the “demand” drives product development. However, there is also an understanding of why large asset managers have embraced the strategy so readily—higher fees. Yes, you too can own an ESG fund that is almost three times as expensive as the S&P 500 index, all for the sake of “feeling good about yourself.” While ESG investing was promoted as a way for individuals to “invest with their principals,” in reality it was …
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