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ESG Funds Resist Worst of Downturn But Investors Are Spooked

The market swoon is testing the resilience of ESG funds and their shareholders.

RF markets data

Source: Moment RF/Getty Images

For sustainable investors browbeaten by the recent attacks on the industry, fund performance may offer a bit of reprieve. 

In three broad categories — Europe-focused, US-focused and global — ESG equity funds have done better this year, on average, than their non-ESG counterparts. All are negative, in line with the broad market selloff, but ESG funds are down less than the others, in spite of typically tech-heavy, energy-light portfolios.