Performance & Popularity
Years of research studies show that responsible investing generates returns as good or better than conventional investing, especially over the long term. Decades of practical experience show the same.
The Future Can Be Bright
Years of research studies show that responsible investing generates returns as good or better than conventional investing, especially over the long term. Decades of practical experience show the same.
A common misperception about responsible investing is that it results in lower returns. Not true!
Years of research studies show that responsible investing generates returns as good or better than conventional investing, especially over the long term.
For example:
- Morningstar’s 2022 Sustainable Funds US Landscape Report found that “In 2021, most sustainable funds delivered stronger total and risk-adjusted returns ... than their respective Morningstar Category indexes.”
- Morgan Stanley’s Institute for Sustainable Investing study analyzed 3,000+ US mutual funds and ETFs, finding that sustainable equity funds outperformed non-ESG funds by a median of 4.3 percent in 2020.
- NYU Stern Center for Sustainable Business conducted a meta-analysis of 1000+ studies from 2015-2020: "59% showed similar or better performance for ESG funds relative to conventional investment approaches while only 14% found negative results.”
To see the actual performance of sustainable investing, look no further than the MSCI KLD 400 Social Index, the very first socially responsible index fund launched by Amy Domini in 1990.
Source: Green Money Journal
The KLD 400 Social Index has consistently outperformed the general index of large and mid-cap US stocks for more than 30 years – showing returns better than the market rate, especially over time.
Learn more about financial performance with sustainable investing from US SIF.
Responsible Investing is Popular!
Responsible investing has rapidly increased over the past three decades and is more popular than ever. According to the most recent US Sustainable Investment Forum Trends Report, sustainable investing accounted for $8.4 trillion in 2022 – or 1 in 8 dollars under management.
Source: US Sustainable Investment Forum
The outlook for responsible investing is strong. The Morgan Stanley Sustainable Signals 2024 report found that 84% of individual investors in the United States and 77% globally are interested in sustainable investing, with almost half in the United States saying they are very interested. Young people especially care about sustainable investing as a way to shape the world they will inherit.
Source: 2024 Morgan Stanley Sustainable Signals: Understanding Individual Investors’ Interests and Priorities
Ready to get started with responsible investing? Learn about responsible investing in stocks, mutual funds, community notes, and more.
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