Excerpt from Barron’s quoting DataTrek’s Nick Colas:
…. “Almost all of the top five U.S.-equity ESG-focused ETFs are overweight Microsoft stock (ticker: MSFT), according to Nicholas Colas, co-founder of DataTrek Research, meaning their allocation to the company is a higher percentage compared with its weighting in standard indexes like the S&P 500. Other tech giants, such as Alphabet (GOOGL), are also well-represented in some of these funds, according to DataTrek.
ESG ETFs will likely have more of an influence on demand for certain stocks as their inflows continue to rise.
“ESG is increasingly a factor, like Growth or Value, and as money flows continue, a company’s ESG score will inform its access to index-based capital,” Colas wrote in a Tuesday morning briefing to clients”….
Read the full article here in Barron’s!