Skip to content
Subscriber Only

Tech Stock Tremors Send Warnings to High-Flying ESG Funds

  • Socially aware ETFs have a hefty allocation to megacap tech
  • End of the stay-at-home trade could drag on performance
Updated on

The lurches in technology stocks this week are sending a warning to environmental, social and governance-focused funds: Your former superstars may now weigh you down.

While the Nasdaq 100 Index rose for the first time in three days on Wednesday, it’s still down about 1.6% on the week. This will be felt through many ESG ETFs, since tech giants such as Apple Inc. and Microsoft Corp., with their relatively small impacts on the environment, are heavily represented in socially conscious portfolios.