There are numerous advantages of investing in a fund rated by Morningstar’s sustainable investment overall. Compared to other types of funds, sustainable funds tend to be less expensive and offer higher returns than their peers. Additionally, their sustainable investment criteria are based on the most current environmental and social standards. Listed below are some of the benefits of Morningstar sustainable funds. In addition, they offer more flexibility for investors, as Morningstar will continue to review them.
The Morningstar Sustainable Investment – Overall indicator includes all index funds and exchange-traded funds (ETFs) that explicitly state their sustainability or ESG strategies. A good example of this is the Putnam Sustainable Leaders Fund. This fund invests in companies with a commitment to sustainability and growth stocks. The fund has an ESG rating of AA. Morningstar’s Sustainable Investment – Overall indicator shows how well a fund is doing in terms of reducing the risk of investment in a company.
Other benefits of Morningstar’s ESG screening tool are its ability to identify the best sustainable mutual funds. The ESG Screener utilizes Sustainalytics data to analyze company-level ESG ratings. This tool is also easy to use and offers a variety of reports. It can be used for identifying sustainable mutual funds, as well as for researching companies and investing in them. If you are interested in finding out more about Morningstar’s ESG screening criteria, you can visit the website below.