Do you know what ESG investing is? If not, you’re not alone. A new study by Northern Trust’s FlexShares ETFs revealed that “79% of women investors express(ed) interest in SI/ESG investing” compared to 42% of men, yet these women know a lot less about it.
Why? Women are not being told about these options, according to this study.
ESG is investing with a focus on Environment-Social-Governance values, also sometimes known as Sustainable Investing, though they are not identical.
But, 1 in 5 women who are particularly focused on aligning their investments with their ESG-related values won’t work with financial advisors who “wouldn’t/couldn’t add SI/ESG investments into their portfolio,” according to an email from the study’s authors.
An investment advice exercise
Since April is both tax season and Earth Month – and this Earth Day comes on the heels of newly-proposed climate disclosure rules by the Securities and Exchange Commission (SEC) – four financial advisors in my network for advice as a very small, non-random study.
I asked these advisors how a woman 55 to 65 (a demographic that doesn’t get a lot of financial attention), could invest $25,000 as part emergency fund and part financial future. I did not give any other parameters.
The recommendations were quite varied.
Here are the recommendations, in no specific sequence:
1. A “fairly safe and plain vanilla” option: “I would put that $25K in something that is fairly safe and plain vanilla, from a financial point of view—I’d go for a balanced sustainability fund, maybe a 30-60 bond/equity fund that integrates sustainability and especially climate…
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