Is your ESG fund actually ESG?

Why investors in this new field need to look under the hood

Andrew Willis 21 August, 2019 | 1:40AM

Green liquid mixing in yellow liquid

Earlier this month, Vanguard added gun stocks into its biggest sustainable exchange traded fund.

“The Vanguard issue - precipitated from an error on the part of the index provider (FTSE Russell) - wasn’t immediately spotted by the portfolio management team at Vanguard,” says Ben Johnson, Morningstar’s director of passive funds research. “As a result, their environmental, social and governance index fund temporarily owned small positions in stocks that come far from meeting their eligibility criteria.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Aritzia Inc12.31 CAD-1.52
Berkshire Hathaway Inc B182.83 USD-0.19
BP PLC ADR24.39 USD1.96
General Electric Co7.94 USD0.63
Tesla Inc524.00 USD4.36

About Author

Andrew Willis

Andrew Willis  Andrew Willis is a content editor for Morningstar.ca.