The Financial Outlook for Personal Investors: Why are ESG funds underperforming?

Myron Jobson of Interactive Investor discusses ESG or ethical investing funds with Simon Rose. He explains that, because green-orientated companies tend to be relatively new, they have suffered from the general rotation from growth to value stocks. For obvious reasons, they are underweight in the energy and defence sectors which have done well of late. He points out, though, that ESG funds have outperformed over the longer-term and suggests that investors be patient and not panic.