CHAPTER 16

ESG Funds and ETFs

Choosing a sustainable fund

Opening question

“There are thousands of ESG funds. How do I choose one?”

In this chapter

The main types of ESG fund, from simple exclusion funds to impact funds
Active funds, index funds and ETFs: what changes when ESG is added
How to read a prospectus, the sustainability disclosures and the list of holdings
Fund labels, fund ESG ratings and portfolio metrics, and their limits
Fees and tracking difference, with a worked example
Tracking error against a conventional benchmark: how far a fund strays from the market
A scorecard to compare funds, with a worked example
ESG funds in Vietnam and Asia

🔒

This chapter is in the full book

Chapter 1 is free to read online. The full text of chapter 16 — with its tables, figures, worked examples and practice lab — is available in the complete edition of ESG and Sustainable Investing: From Theory to Practice — Vietnam Readiness (Volume 4, NXW Investment Library).

Read Chapter 1 free Get the full book — contact@nxw.vn

Sections of this chapter

16.1 A crowded shelf

16.2 Types of ESG funds

16.3 Active funds, index funds and ETFs

16.4 Reading the documents

16.5 Labels, fund ratings and portfolio metrics

16.6 Costs: fees and tracking difference

16.7 How far from the market? Tracking error

16.8 A scorecard to compare funds

16.9 ESG funds in Vietnam and Asia

← Chapter 15: ESG Indexes Chapter 17: Greenwashing and How to Spot It →