Sometimes when starting down a new path, it can be hard to take that first step. In fact, if you’re like me, you want the entire road map before you are comfortable moving even incrementally forward for fear of making a bad move somewhere along the line.
I’ve spoken to many investors who feel this way about dipping their toe into responsible investing.
Their interests are piqued as assets continue to flow into the space at a record pace. Morningstar, which measures flows into the Responsible Investing space globally, reported global assets in 2020 reached $1.65 trillion, and noted that they saw record flows in every region they measure. And that pales in comparison to what has happened in 2021. As of the end of the third quarter, Morningstar reported that assets in these ESG funds and ETFs reached $3.9 trillion.