ESGU - ESGU: Fairly Valued With Potentially Lower Long-Term Risks

• I think that ESG investing could be some combination of a fad and a strategic play on long-term regulatory arbitrage.
• The main benefit of ESG investing is probably not to "trade the fad", however, but to benefit from the de-risking associated with excluding the "bad" companies (from an ESG perspective).
• ESGU does this with a straightforward methodology, avoiding certain companies while keeping companies that would belong in most other broad equity market indices.
• While ESGU seems to price in less risk into its portfolio, I think this is reasonable, and on balance, I like its simple premise. ESGU is likely to be a lower-risk hold than broader index funds in the long run.

For further details see: