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ESG Stock Resilience Is Paving the Way for a Surge in Popularity

  • So far this year 59% of U.S. ESG ETFs are beating S&P 500
  • Outperformance could spur demand, Bloomberg Intelligence says
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Photographer: Jeff_Hu/iStockphoto

Investors who piled into ESG stock strategies have beat broader indexes this year, fueling speculation that the strategy of prioritizing companies doing social good will continue to gain adherents well after the current crisis passes.

Most exchange-traded funds focused on companies with above-average marks for environmental, social and governance practices have outperformed this year, according to research from Bloomberg Intelligence. So far in 2020, 59% of U.S. ESG ETFs are doing better than the S&P 500 Index while 60% of European ESG ETFs have beat the MSCI Europe Index.