How Bond Investors Can Also Jump on the ESG Train

Environmental, social and governance issues have become major themes in stock investing by exchange-traded funds. Now, other funds are bringing ESG approaches to bonds.

Investor appetite for ETFs focused on ESG-friendly bonds has surged this year. From the start of the year through Aug. 31, ETFs focused on ESG bonds recorded inflows of about $2.1 billion—about the same amount as for all of 2020, says Dave Nadig, chief investment officer and director of research at ETF Trends.  

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