What Big Tech earnings divergence reveals about ESG

clock • 4 min read
What Big Tech earnings divergence reveals about ESG

ESG investors are breaking up with Big Tech. Or, rather, Big Tech is breaking up with Big Tech.

"The problem with the ESG win-win story," said the FT's Robert Armstrong, all the way back in 2020, "is performance attribution." At the time, ESG funds were on a tear. Vanguard's ESG US Stock ETF (ESGV) had returned 28% since its 2018 inception, whipping its broad-market ETF's 17%. Yet critics pointed to sector bias as evidence that any perceived factor outperformance was a mirage. ESG funds were riding the coattails of tech. Case in point: ESGV top six holdings were Apple, Microsoft, Amazon, Facebook, Google and Tesla. To be fair, those were the top six holdings of the total US-domi...

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