Don't overpay when investing in ethical funds

Does sustainable or ethical investing pay? The evidence is mixed. But one thing matters more than anything else, says Robin Powell.

The headquarters of ExxonMobil are illuminated at night, in

Exxon Mobil: sustainable to some
(Image credit: Bloomberg via Getty Images)

Everyone seems to be talking about sustainable investing right now. John Stepek recently looked at the difficulties of finding out exactly what's in your "ethical" fund. But putting aside questions of morality for a moment is investing with an eye on social impact a good idea financially? Do environmental, social and corporate governance (ESG) funds deliver higher returns than their mainstream counterparts? What does the evidence suggest?

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Robin Powell

Robin Powell is an award-winning journalist, author and video producer, and is the Editor of the investing and personal finance blog, The Evidence-Based Investor. He has co-authored two popular books on investing, the most recent being How to Fund the Life You Want, which he wrote with Jonathan Hollow and is published by Bloomsbury.