ESG & Investing
WisdomTree ESG Funds With Fossil Fuels Draw SEC Penalty
- Coal, natural gas and tobacco holdings showed up in portfolios
- Cease-and-desist order signed without admitting fault
The US Securities and Exchange Commission headquarters in Washington, DC.
Photographer: Kent Nishimura/BloombergThis article is for subscribers only.
Advisory firm WisdomTree Asset Management Inc. agreed to pay $4 million to settle US Securities and Exchange Commission allegations that it failed to deliver on its promise to create exchange-traded funds that avoided investments in fossil fuels or tobacco.
WisdomTree touted three funds from March 2020 to November 2022 with an environmental, social and governance strategy that excluded certain “controversial products or activities,” according to the regulator’s cease and desist order on Monday. Some of the companies chosen as investments were involved in coal mining and transportation, natural gas extraction and retail sales of tobacco products, the SEC said.