Thoughts in Charts: ESG for a Reasonable Fee

You might have heard that sustainable investing costs more. But as this week’s “Thoughts in Charts” shows, claiming sustainable investing costs more is becoming more and more of an outdated assertion, and that’s good news.

Prior to 2016 (the grey portion of the chart) very few ESG funds fell into the least expensive of their Morningstar category, represented by the far left 1st decile. Since 2016 a significant number of funds have been added to the lower decile fees. Times have changed, and we are increasingly able to find funds that charge competitive management fees while still offering an ESG-focused strategy.

Source: Lynch, Katherine. “Newer, Low-Cost ESG Offerings Help Push U.S. Sustainable Fund Fees Down”. 1 June 2020. Morningstar. https://direct.morningstar.com/research/doc/986949/Newer-Low-Cost-ESG-Offerings-Help-Push-U-S-Sustainable-Fund-Fees-Down

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