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Interested in Sustainable Investing? Here's What You Need to Know About Sustainable Funds

How to tell different ESG factors apart in your investing decisions.

Karen Wallace 03 March, 2020 | 9:00

Sustainable investing can be a difficult concept to get your arms around.

First of all, there are a lot of terms that seem synonymous--or are used interchangeably, depending who you talk to--including sustainability, ESG (short for environmental, social, and governance), impact investing, and responsible investing.

There are also some very pervasive myths. Many people believe they will sacrifice return if they invest in line with their beliefs, so they figure they should hold their nose and stick with conventional investments. Not true!

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About Author

Karen Wallace  Karen Wallace, CFP® is Morningstar’s director of investor education.

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