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.



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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