“Investors with an environmental, social and governance (ESG) focus are increasingly leaning toward passive portfolios, which may seem to offer the simplicity they crave in a complex market landscape. But the path to passive is fraught with risks, particularly when it comes to sustainable strategies.”

[COMMENTARY] Passive portfolios — where the portfolio manager largely follows a stock or bond index — are dominant in most ethical and sustainable investment portfolios. However, as this article demonstrates, actively managed portfolios and funds are important to consider too.
Active or Passive? Seeking Solutions to ESG Confusion, by Kate Mead and Amelia Sexton, May 8, 2024, AllianceBernstein, USA.