Scientific Beta

SMS Trustee News: "A report from research firm Scientific Beta, titled “From ESG Confusion to Return Dispersion”, examined 34 sustainability-focused ETFs with ESG components invested in United States equities and found a 6.9 per cent difference in annual returns between the best and worst-performing funds."

SMS Trustee News 20/05/2024

"(...) The performance of exchange-traded funds (ETF) with environmental, social and governance (ESG) criteria may vary widely due to the different sustainability goals they support, research conducted by a global index provider has shown. A report from research firm Scientific Beta, titled “From ESG Confusion to Return Dispersion”, examined 34 sustainability-focused ETFs with ESG components invested in United States equities and found a 6.9 per cent difference in annual returns between the best and worst-performing funds. However, this could extend to a maximum disparity of 22.5 per cent over a single calendar year when adjusted for market exposure. Scientific Beta research director Felix Goltz pointed out this difference could be attributed to the varying sustainability metrics these funds follow and the lack of a comprehensive standard for ESG investing. (...)"