Investors souring on ESG funds could pose a challenge to governments seeking to enlist them in the fight against climate change.
In 2021, 40% of actively managed ESG funds beat their benchmarks, almost as well as conventional funds.
In 2020, the actively managed ESG funds did even better; 57% of them beat their benchmarks, while only 43% of conventional funds did so.
One active ESG fund that has suffered in the downturn is Parnassus Core Equity fund (PRBLX.O).
It's possible that market trends will come to favour the portfolios of ESG funds in the coming months.