Podcast
Questions and Answers
What are the three main approaches used to compute ESG ratings?
What are the three main approaches used to compute ESG ratings?
- Fundamental, technical, and macroeconomic
- Top-down, bottom-up, and thematic
- Momentum, value, and growth
- Qualitative, quantitative, and engagement-based (correct)
What is a key reason investors have been drawn to passive investment strategies?
What is a key reason investors have been drawn to passive investment strategies?
- Improved risk management
- Higher returns compared to active management
- Broader diversification
- Lower fees and expenses (correct)
Which type of investment vehicle has seen the fastest growth in ESG-focused assets?
Which type of investment vehicle has seen the fastest growth in ESG-focused assets?
- Exchange-traded funds (ETFs) (correct)
- Private equity funds
- Mutual funds
- Hedge funds
What is a key advantage of using index benchmarks for ESG investing?
What is a key advantage of using index benchmarks for ESG investing?
Which of the following is NOT a potential benefit of passive ESG investing strategies?
Which of the following is NOT a potential benefit of passive ESG investing strategies?
According to the passage, which of the following statements is true about the current state of ESG investing?
According to the passage, which of the following statements is true about the current state of ESG investing?
What is one approach that can be used to extend negative screens to smart beta strategies?
What is one approach that can be used to extend negative screens to smart beta strategies?
How is the approach of extending negative screens to smart beta strategies normally realized?
How is the approach of extending negative screens to smart beta strategies normally realized?
What is one approach that some investors use to integrate ESG factors into their investment strategies?
What is one approach that some investors use to integrate ESG factors into their investment strategies?
What is the reason that an investor may have for an ESG investment?
What is the reason that an investor may have for an ESG investment?
What does the text say is required for institutional investors who want to integrate ESG factors into their investment strategies?
What does the text say is required for institutional investors who want to integrate ESG factors into their investment strategies?
What is one approach that other investors use to integrate ESG factors into their investment strategies?
What is one approach that other investors use to integrate ESG factors into their investment strategies?
What is the main focus of actively managed ESG funds?
What is the main focus of actively managed ESG funds?
What is the primary characteristic of passively managed ESG funds?
What is the primary characteristic of passively managed ESG funds?
Which of the following is a common approach for excluding certain industries in ESG investing?
Which of the following is a common approach for excluding certain industries in ESG investing?
What is the primary difference between actively and passively managed ESG funds?
What is the primary difference between actively and passively managed ESG funds?
What is the measure of risk associated with actively managed ESG funds?
What is the measure of risk associated with actively managed ESG funds?
Which party is responsible for selecting the portfolio of companies in passively managed ESG funds?
Which party is responsible for selecting the portfolio of companies in passively managed ESG funds?
