There's a battle going on, and it could affect the future of investment options in your 401(k). The Department of Labor (DOL) under President Trump has taken a stand to keep ESG funds out of workplace-sponsored retirement plans. Opposing that stance are major financial firms like Fidelity and BlackRock (NYSE: BLK), as well your favorite rock-and-roll magazine.
ESG stands for environmental, social, and governance, three factors ESG funds use alongside financial analysis to build their portfolios. ESG investing is a hot topic in 2020, because investors are increasingly recognizing that ESG factors could have a positive effect on long-term financial performance. According to Morningstar, money invested in ESG funds has more than doubled over the past three years.
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