Energy sector rally exposes Achilles’ heel of ESG investing
ESG indexes that are loaded with technology and shun energy have been taking it on the chin so far in 2022.
The double-edged sword of ESG investing has become apparent again this year as the unloved energy sector rallied while the more favored technology sector fell.
In January, only 34% of Morningstar’s ESG indexes outperformed their non-ESG equivalents as the equity markets sold off.
Longer term
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