In The Wall Street Journal Investment Management Partner Brian McCabe Discusses Barriers to ESG ETF Adoption
An Oct. 2 article in The Wall Street Journal titled “Vanguard Aims to Prove Feel-Good Investing Can Deliver Feel-Good Returns” reports that while a number of firms have successfully launched ESG exchange-traded funds, they still lack popularity with many investors. Investment management partner Brian McCabe examines some of the barriers to widespread adoption in the piece. “Many retirement savers invest exclusively in mutual funds owned through employer-sponsored savings plans, but only a handful of those offer ESG options, in large part because of regulations that prohibit plan managers from considering anything other than the best economic interests of participants,” Mr. McCabe explains. “Employees can lobby their plan managers to add ESG options, or go through the hassle of setting up their own investment accounts independent of the company-picked fund lineup. Few go through that trouble,” Mr. McCabe notes.