Sustainability showdown: Active or passive?

Over the past few years, investors have moved from active to passive funds. Despite political opposition, investors continue to back sustainable investing and keep putting capital into passive sustainable equity strategies. XPS’ research has found that passive sustainable funds deliver on sustainability targets without affecting their financial returns, outperforming their non-sustainable counterparts. Active sustainable funds exceed their targets by a greater amount but have historically underperformed the market. Passive sustainable funds have delivered a range of outcomes, reflecting the...