A Factor Approach to ESG

Implementing a minimum volatility strategy with ESG screening can reduce risk, improve sustainability characteristics, and seek higher risk-adjusted returns.

IShares

IShares

As the focus on ESG continues to intensify for institutional investors, finding strategies to maximize alpha and manage risk while achieving evolving ESG goals is naturally top-of-mind. The institutional community has used factor investing to successfully target specific characteristics in stock selections for decades, so it’s no surprise that sophisticated investors are now using a factor approach to build a portfolio that maximizes ESG quality while delivering optimal returns and downside risk.

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