…When a firm commits to an ESG pledge comparable to that of NZAM, the asset manager significantly limits the firms in which it might invest, potentially tying it to a sinking ship should certain pro-ESG sectors nosedive. Diversifying an investment portfolio, by contrast, helps to mitigate the risks to both firms and investors and potentially enable them to outperform markets overall. It turbulent economic times, a restrictive ESG pledge may force an asset manager to choose between voguish causes and financial stability. With Vanguard seemingly opting for the latter, it falls to other firms to either follow suit or stay the course. BlackRock, the world's number one asset manager with more than $10 billion under management and a leading proponent of ESG investing, has come under sustained fire from Republicans over so-called "woke" capitalism in connection with its ESG practices. Deep-red Republican states such as Oklahoma and West Virginia have enacted measures barring the investment of state funds with firms that either boycott the energy sector or practice some measure of ESG investing. More recently, Florida Republican Gov. Ron DeSantis announcedthat fund managers handling its state assets may not factor in ESG concerns when making investments. "We need asset managers to be laser focused on returns and nothing more," he said at the time. Republican efforts both in state legislatures and in Washington appear to have been something of a wake-up call for BlackRock in particular. … Read more news: https://justthenews.com/politics-po...ting-undercuts-global-finance-eco-initiatives This is great news. The GOP defense of fiduciary responsibility and return on investment is beginning to pay off. Republican States pulling their pensions and other investments out of fund companies using ESG had a major impact.
In my opinion the pressure of state and federal Republican leaders in defense of return on investment combined with the rise of Strive with competing indexes fixating on fiduciary responsibility led to the walking back here.
Government stay our of our personal lives! Investment firms have a fiduciary responsibility not some loyalty to leftist agenda's. Biden's ESG investment rules threaten your retirement savings Retirement savings being used as leverage on social justice fads unrelated to securing a high return for workers The administration is pushing environmental, social and governance investing, which allows retirement fund managers to select stocks of companies based on their positions on social and environmental issues. Put simply, retirement savings will be used as leverage to force companies to reduce their carbon emissions and establish racial and gender quotas and other social justice fads completely unrelated to securing a high return on workers' lifetime savings.... https://www.foxbusiness.com/markets/bidens-esg-investment-rules-threaten-your-retirement-savings We graduate people from our colleges and universities not with educations but with agenda's and then they dance off to Washington DC or state and local government and think they can run our lives. JUST STOP.
Businesses are funny these days, exclaiming how environmentally friendly they are. Take apple. Their consumer products consume the world output of global energy regardless of what energy source they use. Turns out that new iPhones also installed, unannounced feature, whether their charging sources were "green" or not, including reporting etc. Of course the menu that allows you to turn this "feature" off is buried deep in the settings menu, and frankly it's stupid marketing by Apple to suggest that should you not have the ability to use "green" charging sources that the phone won't or will crank about you using the charging source... This is the world woke environmentalism is building. Social credits for all, even if you don't live in the dictatorship of china....
I've had a Vanguard retirement account for years from an old company, they suck. They used to be good, but not anymore.
What's your beef with Vanguard? My wife and I both have Roth IRAs and brokerage accounts with them, for almost 20 years, so far I can't complain. As to the OP: I can see that some people don't like ESG funds for ideological/political reasons. However, why should people not be able to chose from those stocks/funds? It is not immediately clear that they'll have lower returns than regular stocks/funds. Often, companies that pay attention to their social capital can be quite successful. What this really is: A political agenda against what is perceived as liberal causes. It's also about limiting choice. I thought conservatives were against the latter and for the free market? Maybe not?
You might want to dig deeper, all this news is very recent changes that will effect you if stay the course. And not in a good way either! You might find this interesting.. 4 Lessons From BlackRock's Bold ESG Statement | Morningstar
What's the problem? I don't see anything in that Morningstar article that is concerning. If someone wants to pay a little more ER, or accept a little less return to invest in ESG funds, let them. Most of those ERs are still much lower than those of the majority of other, actively-managed funds. Somehow, it seems the GOP suddenly has concerns about fiduciary duty when it comes to ESG funds. However, when it comes to investment managers ripping clients off, investing in funds that are good to the manager (paying high front load fees), putting clients in high ER funds to collect commission, then the GOP is VERY quiet about fiduciary duty. Why is that? Oh, yes, it is all politicized. PS: Here is a thread rom 2017 about repealing fiduciary rules: http://www.politicalforum.com/index...-dodd-frank-halt-obama-fiduciary-rule.494517/ I don't remember any righty complaining back then.
Well it hasn't done well over the past few years. I don't have that much in there, but it did not perform well. It was from a company 401k.
What's the fund? If you are unhappy with it, you can always sell and buy another fund. Vanguard has actually 1000s of funds for all flavors of investing, many of them low cost index funds.
That's a great strategy, but if it is a high expense ratio fund, it might be better to sell it and buy a low cost index fund. If it's indexed to the stock market, you get the market return, the firm you invest with has nothing to do with it, other than collect the ER.
Really? They advertise at least 9 ESG funds. If you don’t want to invest in that kind of fund, don’t. If there’s a market for that kind of fund, the market will provide it. Free market capitalism. Are you opposed to that?
Right now would be a crappy time to buy into energy because the Ukraine mess has prices inflated and we are in the verge of a global recession where energy always takes a hit.
CULTURE OF CORRUPTION: Here’s The Lawmaker Who Accepts More BlackRock Money Than Any Other Member Of Congress. Washing each other's backs. 'Schumer rebuked efforts to scrap a Labor Department rule that would allow retirement fiduciaries to allocate funds in accordance with the environmental, social, and corporate governance movement, also known as ESG. Both the House and Senate passed a resolution opposed to the rule, which President Joe Biden is expected to veto.' Biden remains aware of whose pocket he is in.
The ESG "Cover Your Ass" Tour Begins As Managers Scramble To Remove References In Pitch Decks “The first rule of ESG is, don’t talk about ESG.” 'ESG stocks and funds are getting pummeled while people look for flights to actual safety, as opposed to unprofitable publicly traded trash with a shiny "green energy approved" label, and these same managers are trying to sidestep political scrutiny over their poor investing decisions.' 'Who could have thought that investing would actually have turned out to be about companies generating actual cash?' 'Fund managers are now doing damage control for their ESG pitches of years past', Bloomberg wrote this week: Dark Blue are the neutral states and I don't see any! 'a deluge of outflows from one of the largest ESG ETFs.'
These Scrappy GOP States are having an impact. The end of ESG? 'The United Nations previously created something called the Net-Zero Insurance Alliance in an effort to somehow bring the insurance industry in line with the UN’s climate change policies.' 'The arrangement requires all participating companies to include environmental, social, and governance considerations (ESG) in their charters. The NZIA may be falling apart, however. An increasing number of American red states have passed laws forbidding ESG requirements that could raise costs and reduce investment profitability. Further, 23 Republican state Attorneys General sent letters to NZIA members suggesting that they could be violating antitrust laws. This has led to multiple European insurance companies pulling out of the group, much to the UN’s consternation.' 'European insurers are pulling out of the UN-convened Net-Zero Insurance Alliance over concerns that red states’ antitrust allegations could hurt their businesses. Bloomberg reported Wednesday that the group was holding a meeting to discuss recent departures, a week after 23 Republican attorneys general sent letters to members of the group raising antitrust concerns.' 'the NZIA is acting as a blackmail squad. ' 'This month, Texas is becoming the latest state to bar insurers from including ESG considerations when setting rates. Other red states are following suit. The private equity world is clearly paying attention. As the linked report notes, during its annual shareholders’ meeting this week, investment giant BlackRock voted against a resolution that would have embedded “decarbonization considerations” into its investment strategy. The company’s CEO pointed out that they are in business to maximize their clients’ investment strategies.' It appears that we have their attention.
The government should keep its runny nose out of business when it is not their job, especially when they haven't a clue about reality or what they are doing.
Biden Spent $1 Billion To Get Schools Electric Buses. This Michigan District Says Theirs Hardly Work. Michigan's fourth-largest school district is having "significant" performance issues with its expensive electric buses, issues that come after the Biden administration spent $1 billion to "transform America's school bus fleet" with electric models. During an April 19 presentation to the Ann Arbor Public Schools Board of Education, the district's environmental sustainability director, Emile Lauzzana, highlighted a number of issues with the district's electric bus fleet. Those buses, Lauzzana said, have "a lot of downtime and performance issues" and aren't "fully on the road," despite the fact that they are "approximately five times more expensive than regular buses." The infrastructure upgrades required to use the buses, meanwhile, were "originally estimated to be only about $50,000" but "ended up being more like $200,000," according to Lauzzana. "I have a number of colleagues in different states who are facing similar challenges," the district official lamented. "For the school bus market, it's been challenging for us." Just months before Lauzzana's admission, President Joe Biden's Environmental Protection Agency announced it awarded nearly $1 billion in taxpayer funds to "transform America's school bus fleet" with "over 2,400 clean school buses that will accelerate the transition to zero emission vehicles." But problems with electric buses occurred long before the agency's announcement. Electric bus company Proterra, which the Biden administration has lauded as "pretty amazing," saw Philadelphia remove 25 of its buses from the roads in 2020 due to structural problems. Those buses cost the city $24 million. Another Southern California city waited months in 2021 to repair nearly a dozen buses from its electric fleet, more than a third of which were out of service at the time. Ann Arbor Public Schools' electric buses also use Proterra batteries and drivetrain technology... https://freebeacon.com/biden-admini...is-michigan-district-says-theirs-hardly-work/ And the Biden administration wants MORE of the same!!!! Maybe they need to listen to Kamala and paint them yellow Geeezzzz even the foreigners mock her..........................
