Scientific Beta

Institutional Asset Manager: "A new study from Scientific Beta, entitled “Sustainability Alpha in the Real World: Evidence from Exchange-Traded Funds”, assesses the performance of sustainable investing from a value-weighted portfolio of ETFs that follow systematic ESG investing strategies in the US equity market. The study finds that sustainable investing did not deliver higher returns than standard index funds."

Institutional Asset Manager 02/10/2023

"(...) A new study from Scientific Beta, entitled “Sustainability Alpha in the Real World: Evidence from Exchange-Traded Funds”, assesses the performance of sustainable investing from a value-weighted portfolio of ETFs that follow systematic ESG investing strategies in the US equity market. The study finds that sustainable investing did not deliver higher returns than standard index funds. Widely commented periods of outperformance, such as the year 2020, can be explained in large part by industry effects, such as a tilt towards technology stocks. Over the past decade, such periods of outperformance are offset by corresponding periods of underperformance, leaving ESG investors with returns of -0.2 per cent compared with the market index and -0.7 per cent compared with a benchmark with matching industry exposure, the authors say. (...)"