Environmental/Social/Governance (ESG)

Environmental/Social/Governance (ESG)

ESG is a set of metrics outside traditional fundamentals that can explain or impact a company’s bottom line over time. When it comes to assessing the investment case of a company, ESG speaks to its business’ sustainability, environmental footprint, social impact, management and diversity efforts as well as ethical issues. ESG ETFs incorporate ESG metrics in their security selection and weighting in an effort to offer more targeted access for investors looking to be socially responsible, or environment friendly with—or to impact-invest—their money.