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Carbon Bubble

Big Oil Is Boosting ETF Returns and ESG Funds Are No Exception

Several green ETFs hold stakes in large oil and gas producers, with higher crude prices meaning potentially better earnings.

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Chevron CFO on Dividend, Oil Demand, Industry Consolidation

The powerful rebound in oil prices has turned exchange-traded funds tracking fossil fuels into some of the best performing in the U.S. this year. Strangely, the rally in crude has been pretty good for products aiming to safeguard the environment, too.

A quirk in the way many environmental, social and governance indexes are built means several ESG funds hold stakes in big oil producers such as Exxon Mobil Corp. and Chevron Corp.