Has the recent market environment been favorable or unfavorable for ESG investors?
Will this environment stay the same or change?
How should ESG investors adapt to the potential changes?
Characteristics of ESG Portfolios
ESG Sector Overweights and Underweights
Three-Year Return
Three-Year Volatility
Five-Year Return
Five-Year Volatility
S&P 500 ESG Index
6.18%
14.9%
7.33%
13.5%
S&P 500 Index
5.10%
15.2%
6.73%
13.7%
Recent Investing Environment
Three Years
Five Years
Russell 1000 Value Index
9.7%
8.29%
Russell 1000 Growth Index
20.5%
14.63%
ESG Sector Overweights and Underweights
Sector Performance Relative to Market
Three Years
Five Years
Russell 1000 Defensive Index
16.3%
12.2%
Russell 1000 Dynamic Index
13.7%
10.7%
Looking to the Future
Growth over Value Stocks Performance, Rolling Five-Year Averages
Defensive over Dynamic Stocks Performance, Rolling Five-Year Averages
Stocks by Style and ESG Characteristics
Conclusion
Professional Learning for wealthytrails.com Members
Gautam Dhingra, PhD, CFA
Gautam Dhingra, PhD, CFA, is the founder and CEO of High Pointe Capital Management, LLC. He developed the firm’s pioneering investment approach based on the concept of Franchise Quality, and under his leadership, High Pointe has built an enviable investment performance record. Dhingra served on the faculty member at Northwestern University’s Kellogg School of Management for two years. In this role, he designed and taught The Business of Investing course in the school’s MBA curriculum. His research interests include ESG investing and valuation of intangible assets. He holds a PhD in finance, with specialization in investments and econometrics, from the University of Florida’s Warrington College of Business. At Warrington, he taught two courses in securities analysis and derivatives.
Christopher J. Olson, CFA, is a principal and portfolio manager at High Pointe Capital Management. Prior to High Pointe, he was a portfolio manager at Columbia Wanger Asset Management in Chicago for 15 years where he managed both equity and balanced mutual funds. He began his investment management career at Yasuda Kasai Brinson in Tokyo in 1991, and later joined the parent company, Brinson Partners, to help start the firm’s emerging markets investment strategy. He has lived and worked in Sweden, Japan, and Taiwan. He is proficient in Mandarin Chinese and has studied five other foreign languages. Olson received an MBA from the Wharton School of Business with distinction and an MA in international studies from the School of Arts and Sciences, both at the University of Pennsylvania. He graduated from Middlebury College with a BA in political science, summa cum laude. He earned his CFA charter in 1998 and is a member of CFA Chicago. His civic responsibilities include his role as chair of the board at Swedish Covenant Hospital in Chicago and as trustee at Lincoln Academy in Maine.
