Invesco ESG NASDAQ 100 ETF offers exposure to the recalibrated version of the Nasdaq-100 featuring only names that successfully passed the ESG screening. QQMG holds all stocks present in QQQ except ten, like ADI, HON, and CEG, to name a few. With a larger allocation to IT and energy ignored, it has stronger growth metrics but is also more expensive than QQQ.
There are wide-ranging implications for other sectors and industries related to deployment of AI. But AI's intersections aren't limited to the worlds of business and finance.
Over the past few years, investors and regulators have increased scrutiny of greenwashing. That is boasting about ESG credentials when there's not meat on the bone or misrepresenting ESG in fund form.
With artificial intelligence expanding at a rapid pace, so are related regulatory concerns. Regulators around the world are grappling with how to oversee AI without stifling innovation.
Investors who feel that sustainable and environmental, social, and governance (ESG) investing isn't getting as much attention as it did a couple of years ago are probably on to something with that sentiment. Perhaps that's a good thing, considering the political vilification endured by ESG investing over the past few years.
There's a specific point about ESG that many advisors and market participants frequently ponder. It's about whether this investing style can generate returns on par with or in excess of traditional strategies.
It appears much of the backlash and political vitriol aimed at ESG standards and investing is calming a bit. But there's no telling when those flames could be reignited.