“Whether ESG equity investors are motivated by the desire to do good or the expectation of superior performance, they face the prospect of potential selloffs merely by virtue of their exposure to risk. We therefore propose that ESG equity investors consider adding a dynamic component to their portfolios that cuts risk when market conditions are fragile and accepts risk when conditions are resilient.”

[COMMENTARY]The authors’ proposal to consider some active management in portfolios and the addition of risk measures could interest many investors and portfolio managers.
ESG That’s Risk Managed, by Mark Kritzman and Cel Kulasekaran, June 27, 2022, etfdb.com, USA.